The strategy that China is selling its products in the US market
Last Updated on May 7, 2024 3:05 am
A Chinese company has set up a company called ‘Man Wah Furniture Factory’ in the city of Monterrey, Mexico. After that, they make luxurious and comfortable leather sofas, write ‘Made in Mexico’ on them and export them to big markets like Walmart and Costco in the United States.
This three-dimensional relationship between the United States, China and Mexico has become known in Mexico under the new term ‘nearshoring’.
Man Wah is one of dozens of Chinese companies that have recently located in industrial parks in northern Mexico to move closer to the U.S. market to manufacture and sell products. As a result, it is possible to avoid the sanctions and taxes that Washington has imposed on Chinese companies in the ongoing trade war between the United States and China.
Yu Ken Wei, General Manager of Man Wah, said, “We moved their company to Mexico by thinking about economic and logistical aspects. We are expecting 3-4 times more production here.’
He also said, “The purpose of our coming to Mexico is to produce the same amount of products that we produce in Vietnam.”
On the other hand, political analysts say that China has thousands of years of experience in trade. On the other hand, Americans lag behind in business thinking compared to China. The Chinese are reaching America’s doorstep in the name of trade.
They also said that no matter how much the United States spreads the net of sanctions, the Chinese have the intelligence and ability to break through these nets. Now it remains to be seen how much the US can overcome China with trade sanctions.