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As More Manufacturers Look to Exit China, Many May End Up in Mexico

Disruptions brought on by China’s draconian COVID Zero crackdowns, rising wages, and stricter environmental controls are all contributing to an exodus of manufacturers. While many are heading to Vietnam and other Southeast Asian nations, Mexico is also well-positioned to benefit.

Factory wages in Mexico have barely budged over the past ten years at around $2 an hour, a third of what it costs in China. Plus, products made in Mexico have duty-free access to the U.S. and Canadian markets.

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