China urged Mexico to “think twice” before levying tariffs, a warning that could signal Beijing’s willingness to retaliate over a move it sees as giving into demands from the US.
“Any unilateral tariff increase by Mexico, even within the framework of WTO rules, would be seen as appeasement and compromise toward unilateral bullying,” a Chinese Ministry of Commerce spokesperson said in a statement on Thursday. “We urge the Mexican side to exercise extreme caution and consider carefully before taking any actions.”
Mexico has come under growing pressure from US President Donald Trump’s stance on trade, particularly his push for steep tariffs on Chinese goods.
Photo: Bloomberg
The Latin American nation on Thursday announced plans to impose duties of as much as 50 percent on cars and other products made by China and several Asian exporters.
Mexican President Claudia Sheinbaum, who is preparing for talks over North America’s free-trade deal, later said that she is not seeking conflict with China, but instead wants to protect domestic industry.
China’s exports to Mexico have nearly doubled since 2016, the year before Trump started his first term in office, in part because Chinese companies moved operations there to avoid US tariffs, but it is become increasingly difficult for nations caught in the middle between Washington and Beijing to navigate bilateral relationships with the two superpowers as the US president pushes trading partners to increase levies on China.
“Beijing will likely hit back with reciprocal tariffs immediately, but risks alienating partners at a time when it critically needs allies. Over time, it may also encourage firms to localize production in partner countries, though that would come at the cost of weaker output and jobs at home,” Bloomberg Economics said.
China runs a substantial trade surplus with Mexico. Last year it exported US$71 billion more than it imported, Chinese customs data showed.
Mexico accounted for about 5 percent of China’s copper ore imports in January to July, as the Asian nation’s smelters try to secure every tonne of raw material they can in a tight global market.
While copper ore and concentrates could be a potential target for retaliation, Mexico would likely be able to find other customers given strong demand for the metal essential for the renewable energy industry.
The biggest producer of copper in Mexico is US-based Southern Copper Corp, a part of Mexican billionaire German Larrea’s Grupo Mexico.
The Chinese Ministry of Commerce spokesperson urged nations to strengthen communication and coordination “amid widespread global opposition to indiscriminate imposition of tariffs from the US,” adding that China would take necessary measures to safeguard its rights and interests.
ENERGY ISSUES: The TSIA urged the government to increase natural gas and helium reserves to reduce the impact of the Middle East war on semiconductor supply stability Chip testing and packaging service provider ASE Technology Holding Co (日月光投控) yesterday said it planned to invest more than NT$100 billion (US$3.15 billion) in building a new advanced chip testing facility in Kaohsiung to keep up with customer demand driven by the artificial intelligence (AI) boom. That would be included in the company’s capital expenditure budget next year, ASE said. There is also room to raise this year’s capital spending budget from a record-high US$7 billion estimated three months ago, it added. ASE would have six factories under construction this year, another record-breaking number, ASE chief operating officer Tien Wu
The EU and US are nearing an agreement to coordinate on producing and securing critical minerals, part of a push to break reliance on Chinese supplies. The potential deal would create incentives, such as minimum prices, that could advantage non-Chinese suppliers, according to a draft of an “action plan” seen by Bloomberg. The EU and US would also cooperate on standards, investments and joint projects, as well as coordinate on any supply disruptions by countries like China. The two sides are additionally seeking other “like-minded partners” to join a multicountry accord to help create these new critical mineral supply chains, which feed into
For weeks now, the global tech industry has been waiting for a major artificial intelligence (AI) launch from DeepSeek (深度求索), seen as a benchmark for China’s progress in the fast-moving field. More than a year has passed since the start-up put Chinese AI on the map in early last year with a low-cost chatbot that performed at a similar level to US rivals. However, despite reports and rumors about its imminent release, DeepSeek’s next-generation “V4” model is nowhere in sight. Speculation is also swirling over the geopolitical implications of which computer chips were chosen to train and power the new
TECH WINNERS: Taiwan and South Korea reported robust trade, which suggests that they have critical advantages in the rapidly expanding AI supply chain, an official said Exports last month surged to a new high, as booming demand tied to artificial intelligence (AI) infrastructure fueled shipments of advanced technology components, underscoring the nation’s pivotal role in the global semiconductor supply chain. Outbound shipments climbed to US$80.18 billion, the highest ever for a single month, rising 61.8 percent from a year earlier and marking the 29th consecutive month of growth, the Ministry of Finance said yesterday. “The surge was driven primarily by global investment in AI infrastructure,” Department of Statistics Director-General Beatrice Tsai (蔡美娜) said. The mass production of next-generation AI computing systems has accelerated procurement across the semiconductor supply
RSS