Colleen Howe
BEIJING, Feb 12 (Reuters) – China’s top trade negotiator Li Chenggang met Mexico’s Deputy Economy Minister Vidal Lerenas in Beijing on Monday, the first face-to-face meeting since Mexico imposed higher tariffs on Chinese imports, a move that prompted warnings from Beijing.
China’s Ministry of Commerce said in a statement on Thursday that the two countries had in-depth exchanges on bilateral economic and trade relations and other issues.
In December last year, Mexico announced a significant increase in tariffs – up to 35% – on China and other countries that have not signed free trade agreements with Mexico. Analysts generally believe the move is an attempt to appease U.S. President Donald Trump, who has imposed high tariffs on Chinese goods.
Mexico’s tariffs apply to thousands of goods, including cars, auto parts, textiles, clothing, plastics and steel.
Mexican President Claudia Scheinbaum said the tariffs were intended to increase domestic production and address trade imbalances. The tariffs are expected to have the biggest impact on China, Mexico’s second-largest trading partner after the United States.
China’s Ministry of Commerce has warned Mexico to “think twice” before imposing tariffs and said it will take measures to safeguard its legitimate rights and interests, but has so far announced no countermeasures.
Separately, BYD, China’s largest automaker, said it was considering opening a factory in Mexico in 2024, although the Financial Times reported in March that China was delaying approval of the plant over concerns about leaking technology to the United States.
The China-Mexico talks come as the United States, Mexico and Canada prepare to jointly review their free trade agreement before July 1.
The top U.S. trade negotiator said the deal would not be able to cope with a surge in exports and investment into the region from non-market economies such as China, suggesting the United States may press for tighter rules on goods originating in China in a new deal. This will make it more difficult for Chinese companies to use Mexico as a base for exports to the United States
(Reporting by Colleen Howe; Editing by Christian Schmollinger and Jacqueline Wong)
