With wages rising rapidly in China, Mexico once again has become an attractive manufacturing hub—even to the Chinese.
On Oct. 27, the state-owned China Communications Construction Co. signed a preliminary agreement with Jalisco to build an industrial park that would potentially house dozens of Chinese manufacturers, Reuters reported.
The deal underscores the big shift in production costs across the two countries.
In 2000, workers in Mexico’s manufacturing sector earned nearly 60 percent more than their Chinese counterparts.
Now they earn 11 percent less.