The Daily

Why ‘Made in China’ Is Becoming ‘Made in Mexico’

64 snips
Feb 21, 2023
Peter S. Goodman, Global economics correspondent for The New York Times, explores the significant manufacturing shift from China to Mexico. He discusses how the pandemic-induced supply chain disruptions prompted Chinese companies to set up factories in Mexico, with Laredo emerging as a vital trade hub. Goodman highlights the benefits for Mexican workers and American consumers, including job creation and better wages. He also examines the cultural and labor challenges that Chinese firms face in Mexico, reflecting on broader trends in global manufacturing.
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ANECDOTE

Pandemic Supply Chain Disruptions

  • During the pandemic, consumers faced significant delays in receiving goods like mattresses and couches.
  • This was due to major disruptions in the global supply chain, particularly affecting factories in China and trans-Pacific shipping.
INSIGHT

Shift to Regionalization

  • Decades of China-centric globalization are giving way to regionalization.
  • Companies are shifting production closer to consumers, rethinking their reliance on China due to pandemic-related vulnerabilities.
ANECDOTE

Laredo's Booming Trade

  • Laredo, Texas, the busiest US land port, now sees more goods crossing than the ports of Los Angeles and Long Beach combined.
  • This shift highlights the growing importance of Mexico as a manufacturing hub for US markets.
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