Chinese companies are using Mexico as a strategic location to gain access to the US market and bypass tariffs and sanctions imposed on Chinese goods. One such company is Man Wah Furniture, which has established a manufacturing plant in Monterrey, Mexico, with Chinese capital. The move to Mexico allows Chinese firms to save on shipping costs and produce goods that are considered Mexican, thus avoiding US tariffs. The trend of Chinese companies relocating to Mexico is providing a boost to the Mexican economy, with total exports rising by 5.8% in 2021. This trend shows no signs of slowing down, with announcements of capital investment in Mexico increasing rapidly. The interest of Chinese companies in Mexico is expected to continue due to the ongoing trade war between the US and China. Mexico’s strategic position between the two superpowers has made it the US’s main trading partner, replacing China. In addition to Chinese companies, US firms are also setting up facilities in Mexico as part of the nearshoring trend. However, caution is urged regarding Mexico’s involvement in the US-China geopolitical struggle. Some experts argue that Mexico needs to develop a strategy to navigate this triangular relationship. Despite the tensions, some remain optimistic about the nearshoring trend and believe that Mexico can take advantage of it. The key advantage for Mexico in these challenging times of global trade is its proximity to the US market.

Original news source: How Chinese firms are using Mexico as a backdoor to the US (BBC)

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📖 Vocabulary:

Group or Classroom Activities

Warm-up Activities:

– News Summary
Instructions: In pairs, students will read the article and write a concise summary of the main points. They should focus on capturing the key information and presenting it in a clear and organized manner. Afterward, each pair will share their summaries with the class.

– Opinion Poll
Instructions: Divide the class into small groups. Each group will come up with a question related to the article and create a quick opinion poll. They will then go around the class, asking their question to different students and recording their responses. Afterward, they will present their findings to the class and discuss the different opinions.

– Vocabulary Pictionary
Instructions: Write a list of key vocabulary words from the article on the board. In pairs, one student will choose a word and try to draw it while the other student guesses what word it is. They should try to use the specific vocabulary words from the article. After a set time, switch roles and continue the game.

– Keyword Hangman
Instructions: Choose a few key words from the article and write the number of letters for each word on the board, using dashes. Students will take turns guessing letters to try and uncover the word. If a letter is correct, it will be filled in the corresponding position. If a letter is incorrect, a body part of the hangman will be drawn on the board. The goal is to uncover the word before the hangman is completed.

– Pros and Cons
Instructions: In small groups, students will discuss the pros and cons of Chinese companies using Mexico as a strategic location. They should consider the economic benefits, the impact on trade relationships, and any potential challenges or risks. Each group will then present their findings and engage in a class discussion.

🤔 Comprehension Questions:

1. Why are Chinese companies using Mexico as a strategic location?
2. How does establishing a manufacturing plant in Mexico help Chinese firms bypass US tariffs?
3. How is the trend of Chinese companies relocating to Mexico impacting the Mexican economy?
4. Why is Mexico considered the US’s main trading partner now?
5. What is the nearshoring trend and how is it affecting Mexico?
6. What caution is urged regarding Mexico’s involvement in the US-China geopolitical struggle?
7. What advantage does Mexico have in terms of its proximity to the US market?
8. Why do some experts remain optimistic about the nearshoring trend in Mexico?
Go to answers ⇩

🎧✍️ Listen and Fill in the Gaps:

(1)______ companies are using Mexico as a strategic location to gain access to the US market and bypass tariffs and sanctions imposed on Chinese goods. One such (2)______ is Man Wah (3)______, which has (4)______ a manufacturing plant in Monterrey, Mexico, with Chinese capital. The move to Mexico allows Chinese firms to save on shipping costs and produce goods that are considered Mexican, thus (5)______ US tariffs. The trend of Chinese (6)______ relocating to Mexico is providing a boost to the Mexican economy, with total exports (7)______ by 5.8% in 2021. This trend shows no signs of slowing down, with announcements of capital (8)______ in Mexico increasing rapidly. The interest of Chinese companies in Mexico is expected to continue due to the ongoing (9)______ war between the US and China. Mexico’s strategic position between the two superpowers has made it the US’s main trading (10)______, (11)______ China. In addition to Chinese companies, US (12)______ are also setting up facilities in Mexico as part of the nearshoring trend. However, caution is urged regarding Mexico’s involvement in the US-China (13)______ struggle. Some experts argue that Mexico (14)______ to develop a strategy to navigate this triangular relationship. Despite the tensions, some remain optimistic about the nearshoring trend and believe that Mexico can take advantage of it. The key advantage for Mexico in these challenging (15)______ of global trade is its (16)______ to the US market.
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💬 Discussion Questions:

Students can ask a partner these questions, or discuss them as a group.

1. What do you think about Chinese companies using Mexico as a strategic location to access the US market?
2. How would you feel if you were a Mexican worker at a manufacturing plant owned by a Chinese company? Why?
3. Do you think it is fair for Chinese companies to avoid US tariffs by producing goods in Mexico? Why or why not?
4. What is the impact of Chinese companies relocating to Mexico on the Mexican economy? Do you think this trend is positive or negative? Why?
5. How do you think the ongoing trade war between the US and China has affected Mexico’s position as a trading partner with the US?
6. Do you believe Mexico should develop a strategy to navigate its relationship with both the US and China? Why or why not?
7. How do you think the nearshoring trend, with US firms setting up facilities in Mexico, will impact the Mexican economy?
8. What challenges do you think Mexico may face in its involvement in the US-China geopolitical struggle? How can they overcome these challenges?
9. Do you think Mexico can take advantage of the nearshoring trend? Why or why not?
10. How important do you think proximity to the US market is for Mexico’s success in global trade? Why?
11. What other countries do you think could benefit from the nearshoring trend? Why?
12. How do you think the nearshoring trend could impact job opportunities in both Mexico and the US?
13. What are some potential risks or drawbacks of Chinese companies using Mexico as a strategic location? How can these risks be mitigated?
14. How do you think the US-China trade war has affected global trade dynamics overall?
15. Do you think the nearshoring trend will continue to grow in the future? Why or why not?

Individual Activities

📖💭 Vocabulary Meanings:

Match each word to its meaning.

Words:
1. strategic
2. tariffs
3. sanctions
4. capital
5. bypass
6. trend
7. exports
8. investment
9. geopolitical
10. superpowers
11. nearshoring
12. facilities
13. caution
14. navigate
15. proximity

Meanings:
(A) Nearness in space, time, or relationship
(B) Taxes or duties to be paid on a particular class of imports or exports
(C) Goods or services sold to another country
(D) Relating to politics, especially international relations, as influenced by geographical factors
(E) To go around or avoid an obstacle or restriction
(F) Nations with dominant influence or power in international affairs
(G) Penalties or other measures imposed to enforce international law or policy
(H) The practice of transferring business operations to a nearby country
(I) Wealth in the form of money or assets, used for investment
(J) To plan and direct the course of a journey or process
(K) Care taken to avoid danger or mistakes
(L) A general direction in which something is developing or changing
(M) Carefully designed or planned to serve a particular purpose or advantage
(N) The action or process of putting money into something for profit
(O) Buildings, equipment, or services provided for a particular purpose
Go to answers ⇩

🔡 Multiple Choice Questions:

1. Why are Chinese companies using Mexico as a strategic location?
(a) To establish manufacturing plants with Mexican capital
(b) To save on shipping costs and produce goods considered Chinese
(c) To avoid US tariffs by relocating to China
(d) To gain access to the US market and bypass tariffs and sanctions

2. How has the trend of Chinese companies relocating to Mexico affected the Mexican economy?
(a) Total exports have decreased by 5.8% in 2021
(b) Total exports have risen by 5.8% in 2021
(c) Total exports have remained stagnant in 2021
(d) Total exports have increased by 10% in 2021

3. What is the main reason for Chinese companies’ interest in Mexico?
(a) Mexico’s strategic position between the US and China
(b) Mexico’s low labor costs
(c) The ongoing trade war between the US and China
(d) Mexico’s large consumer market

4. What is nearshoring?
(a) US firms setting up facilities in Mexico
(b) Chinese companies relocating to China
(c) Mexican companies establishing manufacturing plants in the US
(d) Chinese companies establishing manufacturing plants in the US

5. What caution is urged regarding Mexico’s involvement in the US-China geopolitical struggle?
(a) Mexico should align itself with either the US or China
(b) Mexico should distance itself from both the US and China
(c) Mexico should focus on its domestic market instead
(d) Mexico needs to develop a strategy to navigate this triangular relationship

6. What is the key advantage for Mexico in these challenging times of global trade?
(a) Its proximity to the US market
(b) Its low labor costs
(c) Its large consumer market
(d) Its access to Chinese capital

7. Why are Chinese companies producing goods that are considered Mexican?
(a) To gain access to the Chinese market
(b) To avoid US tariffs
(c) To save on shipping costs
(d) To bypass Mexican tariffs

8. What is the main reason for US firms setting up facilities in Mexico?
(a) To avoid US tariffs
(b) To gain access to the Chinese market
(c) Nearshoring trend
(d) To save on shipping costs

Go to answers ⇩

🕵️ True or False Questions:

1. US firms are not setting up facilities in Mexico as part of the nearshoring trend.
2. The relocation of Chinese companies to Mexico is not impacting the Mexican economy, with total exports decreasing by 5.8% in 2021.
3. Mexico needs to develop a strategy to navigate its involvement in the US-China geopolitical struggle.
4. Chinese firms cannot save on shipping costs by producing goods in Mexico and labeling them as Mexican.
5. Man Wah Furniture is one Chinese company that has established a manufacturing plant in Monterrey, Mexico.
6. Chinese companies are using Mexico as a strategic location to access the US market and avoid tariffs and sanctions.
7. Mexico’s strategic position between the US and China has made it the US’s main trading partner, replacing China.
8. Capital investment in Mexico by Chinese companies is not increasing rapidly.
Go to answers ⇩

📝 Write a Summary:

Write a summary of this news article in two sentences.

Writing Questions:

Answer the following questions. Write as much as you can for each answer.

1. How are Chinese companies using Mexico as a strategic location to bypass tariffs and sanctions?
2. What is the impact of Chinese companies relocating to Mexico on the Mexican economy?
3. Why are Chinese companies interested in Mexico as a strategic location?
4. How are US firms also taking advantage of the nearshoring trend in Mexico?
5. What is the key advantage for Mexico in terms of global trade?

✅ Answers

🤔✅ Comprehension Question Answers:

1. Chinese companies are using Mexico as a strategic location to gain access to the US market and bypass tariffs and sanctions imposed on Chinese goods.
2. Establishing a manufacturing plant in Mexico helps Chinese firms bypass US tariffs because they can produce goods that are considered Mexican, thus avoiding the tariffs imposed on Chinese goods.
3. The trend of Chinese companies relocating to Mexico is providing a boost to the Mexican economy, with total exports rising by 5.8% in 2021.
4. Mexico is considered the US’s main trading partner now because of its strategic position between the US and China, allowing it to serve as a bridge between the two superpowers.
5. The nearshoring trend refers to US firms setting up facilities in Mexico to take advantage of its proximity to the US market. This trend is benefiting Mexico by attracting capital investment and creating jobs.
6. Caution is urged regarding Mexico’s involvement in the US-China geopolitical struggle because it needs to develop a strategy to navigate this triangular relationship and avoid being caught in the crossfire of the trade war.
7. Mexico has the advantage of proximity to the US market, which allows for lower shipping costs and faster delivery times compared to other countries.
8. Some experts remain optimistic about the nearshoring trend in Mexico because it provides opportunities for economic growth, job creation, and increased trade with the US market.
Go back to questions ⇧

🎧✍️✅ Listen and Fill in the Gaps Answers:

(1) Chinese
(2) company
(3) Furniture
(4) established
(5) avoiding
(6) companies
(7) rising
(8) investment
(9) trade
(10) partner
(11) replacing
(12) firms
(13) geopolitical
(14) needs
(15) times
(16) proximity
Go back to questions ⇧

📖💭✅ Vocabulary Meanings Answers:

1. strategic
Answer: (M) Carefully designed or planned to serve a particular purpose or advantage

2. tariffs
Answer: (B) Taxes or duties to be paid on a particular class of imports or exports

3. sanctions
Answer: (G) Penalties or other measures imposed to enforce international law or policy

4. capital
Answer: (I) Wealth in the form of money or assets, used for investment

5. bypass
Answer: (E) To go around or avoid an obstacle or restriction

6. trend
Answer: (L) A general direction in which something is developing or changing

7. exports
Answer: (C) Goods or services sold to another country

8. investment
Answer: (N) The action or process of putting money into something for profit

9. geopolitical
Answer: (D) Relating to politics, especially international relations, as influenced by geographical factors

10. superpowers
Answer: (F) Nations with dominant influence or power in international affairs

11. nearshoring
Answer: (H) The practice of transferring business operations to a nearby country

12. facilities
Answer: (O) Buildings, equipment, or services provided for a particular purpose

13. caution
Answer: (K) Care taken to avoid danger or mistakes

14. navigate
Answer: (J) To plan and direct the course of a journey or process

15. proximity
Answer: (A) Nearness in space, time, or relationship
Go back to questions ⇧

🔡✅ Multiple Choice Answers:

1. Why are Chinese companies using Mexico as a strategic location?
Answer: (d) To gain access to the US market and bypass tariffs and sanctions

2. How has the trend of Chinese companies relocating to Mexico affected the Mexican economy?
Answer: (b) Total exports have risen by 5.8% in 2021

3. What is the main reason for Chinese companies’ interest in Mexico?
Answer: (c) The ongoing trade war between the US and China

4. What is nearshoring?
Answer: (a) US firms setting up facilities in Mexico

5. What caution is urged regarding Mexico’s involvement in the US-China geopolitical struggle?
Answer: (d) Mexico needs to develop a strategy to navigate this triangular relationship

6. What is the key advantage for Mexico in these challenging times of global trade?
Answer: (a) Its proximity to the US market

7. Why are Chinese companies producing goods that are considered Mexican?
Answer: (b) To avoid US tariffs

8. What is the main reason for US firms setting up facilities in Mexico?
Answer: (c) Nearshoring trend
Go back to questions ⇧

🕵️✅ True or False Answers:

1. US firms are not setting up facilities in Mexico as part of the nearshoring trend. (Answer: False)
2. The relocation of Chinese companies to Mexico is not impacting the Mexican economy, with total exports decreasing by 5.8% in 2021. (Answer: False)
3. Mexico needs to develop a strategy to navigate its involvement in the US-China geopolitical struggle. (Answer: True)
4. Chinese firms cannot save on shipping costs by producing goods in Mexico and labeling them as Mexican. (Answer: False)
5. Man Wah Furniture is one Chinese company that has established a manufacturing plant in Monterrey, Mexico. (Answer: True)
6. Chinese companies are using Mexico as a strategic location to access the US market and avoid tariffs and sanctions. (Answer: True)
7. Mexico’s strategic position between the US and China has made it the US’s main trading partner, replacing China. (Answer: True)
8. Capital investment in Mexico by Chinese companies is not increasing rapidly. (Answer: False)
Go back to questions ⇧