China's chief trade negotiator Li Chenggang met with Mexican Deputy Economy Minister Vidal Llerenas in Beijing on Monday, marking the first face-to-face talks since Mexico raised tariffs on imports from China.
China's Ministry of Commerce said the two sides held in-depth discussions on bilateral economic and trade relations, as well as touched on several key issues of common interest.
In December, Mexico announced tariff hikes on China and other countries without a free trade agreement, with most of them reaching up to 35%. The move was interpreted as Mexico's attempt to ease pressure from US President Donald Trump, who had previously imposed high tariffs on Chinese goods.
Mexico's new tariffs cover thousands of products including vehicles, auto parts, textiles, clothing, plastics and steel. Mexican President Claudia Sheinbaum said the move was aimed at promoting domestic production and reducing trade imbalances.
The biggest impact is expected to be on China, Mexico's second-largest trading partner after the United States. China has previously warned Mexico to reconsider the decision and expressed its readiness to take countermeasures to protect trade interests, but has not yet announced any further action.
In a related development, China's major electric vehicle manufacturer BYD said in 2024 that it was considering building a factory in Mexico.
However, a Financial Times report in March said Beijing had delayed approval of the project due to concerns about potential technology leakage to the United States.
The China-Mexico talks come as the United States, Mexico and Canada prepare to review the USMCA free trade agreement by July 1.
Top US trade negotiators have signaled that the existing agreement is not enough to handle a surge in exports and investment from non-market economies like China, paving the way for tighter regulations on Chinese goods, potentially making it harder for Chinese firms to use Mexico as a production hub for the US market.
