The Reshoring Puzzle: How Mexico, China & India Fit into the Future

At a recent panel discussion, top experts from UC San Diego’s School of Global Policy and Strategy tackled one of the most urgent issues facing global business today: How do China, Mexico, and India fit into the evolving reshoring landscape amid geopolitical tension and economic uncertainty?

With Helen Wang as the moderator, the panel included Dr. Barry Naughton, Professor and So Kwan Lok Chair of Chinese International Affairs, renowned for his expertise on China's economy and industrial policy, Dr. Gaurav Khanna, Associate Professor of Economics, specializing in development and labor economics with a focus on migration, education, and supply chains, and Dr. Rafael Fernández de Castro, Professor and Director of the Center for U.S.-Mexican Studies, and former foreign policy adviser to President Felipe Calderón, with deep insights into U.S.-Mexico relations.

The dynamic discussion explored how companies are navigating supply chain diversification, tariff pressures, and strategic investment risk in an increasingly fragmented world economy.

📌 Key Regional Highlights:

🇲🇽 Mexico.

• Internal judicial reform and political uncertainty under new leadership could impact long-term investor confidence.

• The automotive and aerospace industries remain central to North American value chains, but future stability hinges on regulatory clarity and institutional strength.

• Despite challenges, Mexico is seen as a high-potential nearshoring destination, especially in states like Nuevo León, which has built a strong supply chain ecosystem.

🇮🇳 India

• Major strengths include a large, low-cost skilled workforce, strong STEM base, and geopolitical neutrality.

• Risks include contract enforcement, infrastructure deficits, energy instability, and climate-related vulnerabilities.

• India is leveraging its IT export success to attract knowledge-based foreign investment and build "capability centers" for multinationals.

🇨🇳 China

• Political and regulatory risks are rising, but China’s manufacturing scale, efficiency, and cost advantages remain unmatched.

The discussion highlighted China's shift toward a fortress economy, boosting domestic consumption and insulating from future shocks.