Made In Mexico

Hi, today we explore: (1) The rise of "nearshoring", (2) The bidding war for Paramount, (3) Where most plastic waste actually ends up. Good morning! With all jury members finally selected, today will see [opening arguments]( in Donald Trump’s “hush money trial”, as the former president pleads not guilty on 34 charges. Today, our charts explore: - Made in Mexico: Chinese firms are “nearshoring” to sell into America. - Picture perfect: Multiple bidders want to buy Paramount Global. - Wasting space: Where does most of our plastic end up? Have feedback for us? Just hit reply — we'd love to hear from you! Keep your firms close… China, historically known as the factory of the world, is increasingly setting up new branches in another industrial powerhouse: Mexico. The practice of Chinese companies bringing their production closer to the US — or “nearshoring” — has seen a serious uptick, with a [BBC report]( outlining how a furniture manufacturer that only set up shop in Mexico 2 years ago already employs more than 450 people. There’s a whole [range of reasons]( why foreign businesses may want to set up production outlets nearer to the US. Saving on shipping is an obvious benefit for any overseas company, but Chinese firms have extra incentives: the strategy allows them to evade tariffs that can reach up to 25% when selling into the US — a cost that has risen since the escalation of the [trade war]( between the superpowers. Those tensions have seen American imports from China drop precipitously, and in February, the US bought $32bn worth of Chinese goods, while imports from Mexico totalled $40bn, some 25% more. Hecho en México While nearshoring is clearly a financial boon for Chinese manufacturers, it’s provided a very welcome economic boost to America’s southern neighbor too. Indeed, the Mexican Association of Private Industrial Parks has pointed to the phenomenon as a driving force for industrial park capacity, with the authority anticipating demand for 8 million square meters of new commercial space [by 2027](. [Read this on the web instead]( Picture perfect Paramount Global's stock soared 13% on Friday, following [reports]( that Sony was considering joining Apollo's bid to purchase the historic film and TV [studio](. The news comes after a previous $26 billion Apollo offer was rejected by Paramount's board. Currently, the Sony-Apollo partnership is unable to get back in the picture with Paramount, as the studio is in exclusive merger talks with [Skydance Media]( — a deal that, for the most part, shareholders don’t love. One of the most storied brands in entertainment — having produced cinematic hits such as The Godfather, Titanic, Forrest Gump, and both Top Gun films — Paramount has a complicated history of owners... and an equally complicated modern corporate structure. Despite owning less than 10% of the company, 77% of the voting rights are controlled by the Redstone family through a holding entity called National Amusements. Today, Paramount is a sprawling collection of assets. Its main moneymaker is the TV Media division, centered around CBS’s long tail of channels, which makes revenue from affiliate deals, advertising, and licensing content. The streaming business, Paramount+, has made a big splash in the crowded direct-to-consumer segment… but it’s also racking up big losses, and contributing less than a quarter to its total revenue. This is just the latest chapter in the Paramount sale saga — a Warner Bros. merger that was on the cards late [last year]( eventually fell apart, leaving the company somewhat rudderless until the latest round of M&A rumors started. Paramount shares are down 16% since the start of the year. [Read this on the web instead]( Drastic times, plastic measures Today is Earth Day — and wouldn’t it be nice to celebrate with the first-ever global treaty to curb the world’s mounting plastic pollution problem? That’s not a completely unrealistic outcome. Indeed, since its inception in 1970, Earth Day has grown into an international movement with the potential to seriously influence policy. This year’s theme is Planet vs. Plastics, and global leaders will [convene in Canada]( later in the week to lay plans for what could be the most significant environmental deal since the 2015 Paris Agreement. Much of the discussion will be focused not only on reducing plastic production, but improving how we dispose of existing plastics. The latest data from the OECD via [Our World in Data]( shows that the majority of plastic waste is disposed into landfill, while just 9% is typically recycled. Along with industrial emissions, one of the most harmful [effects]( of the more than 430 million tonnes of plastic that humanity produces each year is its physical impact on [aquatic environments](. With debris choking waterways, fears that microplastics consumed by marine species are accumulating up the food chain and affecting humans are compounded by the estimation that, at the current rate, there will be more plastic in the oceans by weight than fish by 2050. [Read this on the web instead]( More Data • 45% of urban areas in China are sinking 3mm [every year](. • The share of Americans who are highly interested in the presidential election just slumped to a near 20-year low for this point in [the cycle](. • Wasted: the publisher behind GTA just cut 5% of its workforce, adding 600 more layoffs to the ~20,000 that the video game industry has seen since [last year](. • How AI turned the hiring process into a [battle of the bots](. Hi-Viz • Curse like a Taylor: The Tortured Poets Department is Swift’s [sweariest record]( yet. Off the charts: Meta couldn’t stop talking about one thing, now it can’t stop talking about another... what are the 2 buzzwords? [Answer below.] [Answer here](. Thanks for stopping by! Have some [feedback](mailto:daily@chartr.co?subject=Feedback&body=Hi%2C%0A%0AI%20like%20the%20newsletters%2C%20but%20I%20had%20a%20thought%20for%20you...) or want to [sponsor](mailto:james@sherwoodmedia.com?subject=Chartr%20Advertising&body=I%E2%80%99m%20interested%20in%20learning%20about%20advertising%20in%20Chartr...) this newsletter? Not a subscriber? Sign up for free below. [Subscribe]( Copyright © 2024 CHARTR LIMITED, All rights reserved. You are receiving this email because you opted in via our website. Our mailing address is: CHARTR LIMITED 231 Vauxhall Bridge RoadLondon, SW1V 1AD United Kingdom [Add us to your address book]( Don't want charts in your inbox anymore? Break our hearts and [unsubscribe](. [Privacy Policy](