China warned Mexico on Thursday it could impose retaliatory measures after concluding a formal investigation into tariffs Mexico imposed on more than 1,400 categories of Asian goods, in a dispute that threatens to complicate Mexico City’s parallel negotiations to renew its trade agreement with the United States.
“The ministry is authorised to apply the pertinent measures to firmly safeguard the interests of Chinese industries,” MOFCOM said in a statement carried by state news agency Xinhua.
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Mexico’s Economy Secretary Marcelo Ebrard rejected the Chinese position, saying Mexico had the right to protect its industries from what he described as unfair competition.
“We put tariffs in place because we consider that there is an effort to expand the market with government support,” Ebrard said at the annual assembly of Caintra, a major industrial chamber in Monterrey.
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“Your exit price is lower than what it costs the other guy to open his shop. You are going to bankrupt any company.”


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