The Kuka Home furniture factory at Hofusan Industrial Park is one of many Chinese companies investing in Mexico to shorten supply chains.

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As US supply chains decouple from China, Mexico’s manufacturing sector is emerging as a winner.

Manufacturing in Mexico is attractive for companies that experienced pandemic-era supply chain snarls or want to decrease reliance on trade between the US and China amid geopolitical uncertainty.

That’s called nearshoring, which is when companies bring production facilities closer to home markets.