How the Red Sea Crisis Is Affecting Shipping Routes from China

Latin America presents a complex but rewarding import market from China. Brazil requires extensive local documentation and has high tariffs. Mexico benefits from USMCA proximity but has its own regulatory framework. Chile and Peru have free trade agreements with China, making them easier entry points. The common thread across the region is the importance of local partnerships — attempting to go it alone in Latin America rarely works.

China's manufacturing wage growth has slowed significantly. Average manufacturing wages rose about 3% annually in 2024-2026 compared to 8-10% a decade ago. Combined with automation investments, China remains cost-competitive for most manufactured goods. The gap with Southeast Asia is narrowing for labor-intensive products but China maintains advantages in infrastructure, supply chain density, and skilled technical workers.