The specie that is being reduced according to the equation is Cl2.
Now let us look at the reaction equation again;
Mg + Cl2 -----> Mg2+ + 2Cl–
Reduction occurs when there is a decrease in oxidation number and oxidation occurs when there is an increase in oxidation number.
From left to right, the oxidation number of magnesium increased from zero to +2 while the oxidation number of chlorine decreased from zero to -1.
Hence Magnesium was oxidized while chlorine was reduced.
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