China, Mexico held talks amid trade tensions over tariffs

By Colleen Howe

BEIJING, Feb 12 (Reuters) - ‌China's chief trade ​negotiator ​Li Chenggang met Mexico's Deputy Economy Minister Vidal Llerenas in Beijing on Monday, in the first face-to-face talks since Mexico imposed higher ‌tariffs on Chinese imports, drawing warnings from Beijing.

The two countries conducted ⁠in-depth exchanges on bilateral economic and trade relations and other issues, the Chinese Commerce Ministry said ‌in a statement on Thursday.

Mexico ‌announced in December steep tariff increases on China and other countries without free trade agreements with Mexico - most up to 35%. The move was widely ​interpreted by analysts as an attempt to placate U.S. President Donald Trump, who levied significant tariffs on Chinese goods.

Mexico's duties apply to thousands of goods ⁠including automobiles, auto parts, textiles, clothing, plastics and steel.

Mexican President Claudia Sheinbaum said the tariffs are intended to ​increase domestic production and address trade imbalances. The tariffs are expected to have the biggest impact on China, which is Mexico's ​second-largest trading partner after the United States.

China's ‌Commerce Ministry had warned Mexico to "think twice" before levying tariffs and said it would take steps in response to safeguard its ⁠legitimate rights and interests, but it has so far not announced countermeasures.

Separately, China's top automaker BYD said in 2024 it was considering setting up a factory in Mexico, although ⁠the FT reported in March that China was delaying approval for the plant over concerns of ​technology leakage to the United States.

The China-Mexico talks come as the U.S., Mexico and Canada prepare to jointly review their free trade agreement by July 1.

The U.S.' top trade negotiator ‌has said the pact is not equipped to deal with surges of exports and investment from non-market economies such as ‌China into the region, suggesting the U.S. may press for tighter rules on China-origin ⁠goods in a new agreement. That ‌would make it harder ​for Chinese firms to use Mexico as a base for exporting to the U.S.

(Reporting by Colleen Howe; Editing by Christian Schmollinger and ‌Jacqueline Wong)

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