Man Wah is one of the scores of Chinese companies to relocate to industrial parks in northern Mexico in recent years to bring production closer to the US market. Real Research, an online survey app, revealed that 64.56% of the respondents were aware of Chinese firms using Mexico as a backdoor to the US.

Highlights:

  • Mexico should be cautious towards this global tension between China and the US, said 70.42% of the respondents.
  • 67% agree with Baker Pineda on Mexico’s capital appeal and doubt a quick end to the China-US trade war.
  • 66% agree with Yu Ken Wei that moving to Mexico is economically and logically sound

Chinese Firms Using Mexico as a Backdoor to the US

The company’s manager, Yu Ken Wei, says the move to Mexico has made economic and logical sense. 66.10% of the respondents agreed with this statement.

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Figure 1: Whether Chinese firms using Mexico as a backdoor to the US was a smart idea

This also means Chinese firms can avoid the US Tariffs and sanctions imposed on Chinese goods amid the continuing trade war between the two countries. 47.36% of the respondents are somewhat concerned about this.

Read Also: Half of Respondents Believe U.S.-Mexico Border Rules Uphold U.S. Law Against Illegal Immigration

Survey on Chinese Firms Using Mexico as a Backdoor to the US

The firm, which has been in Monterrey since 2022, already has 450 employees in Mexico. Yu Ken Wei aims to expand to over 1,200 employees and launch multiple new production lines in the upcoming years. 64.82% of the respondents support this initiative.

Furthermore, “the structural reasons that bring capital to Mexico are here to stay,” says Juan Carlos Baker Pineda, Mexico’s former minister for external trade. He further stated, “I have no indication the trade war between China and the US is coming to an end soon.” 66.90% of the respondents agree with him.

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Figure 2: Whether respondents agree with former external trade minister Carlos Baker Pineda

Mexico Is China’s Backdoor to the US Market

Experts caution that Mexico’s nearshoring collaborations with Chinese firms could entangle it in the China-US geopolitical rivalry. 70.42% of respondents warn Mexico to be cautious about this global tension.

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Figure 3: Whether Mexico should be cautious about getting itself involved in this global tension

Mexico benefits from its closer ties with the US through “nearshoring,” where countries move their supply chains for important goods to nearby nations. A survey on Chinese firms using Mexico as a backdoor to the US revealed that 66.74% of the respondents think more countries should adopt “nearshoring.”

Methodology

Survey TitleSurvey on Chinese Firms Using Mexico as a Backdoor to the US
DurationApril 26 – May 4, 2024
Number of Participants5,000
DemographicsMales and females, aged 21 to 99
Participating Countries Afghanistan, Algeria, Angola, Argentina, Armenia, Australia, Azerbaijan, Bahrain, Bangladesh, Belarus, Benin, Bolivia,… Brazil, Brunei, Bulgaria, Burkina Faso, Cambodia, Cameroon, Canada, Chile, China, China (Hong Kong) China (Macao), China (Taiwan), Colombia, Costa Rica, Croatia, Czech Republic, Ecuador, Egypt, El Salvador, Ethiopia, Finland, France, Gambia, Georgia, Germany, Ghana, Greece, Greanada, Guatemala, Honduras, Hungary, India, Indonesia, Iraq, Ireland, Israel, Italy, Ivory Coast, Japan, Jordan, Kenya, Kuwait, Kyrgyzstan, Latvia, Lebanon, Libya, Lithuania, Malaysia, Maldives, Maluritania, Mexico, Moldova, Mongolia, Morocco, Mozambique, Myanmar [Burma], Namibia, Nepal, Nicaragua, Nigeria, Oman, Pakistan, Palestine, Panama, Peru, Philippines, Poland, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia, Sierra Leone, Singapore, Slovakia, South Africa, South Korea, Spain, Sri Lanka, Tanzania, Thailand, Togo, Tunisia, Turkey, Turkmenistan, Uganda, Ukraine, United Arab Emirates, United Kingdom, United States, Uruguay, Uzbekistan, Venezuela, Vietnam, Yemen, Zimbabwe.