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China and USA Engage in Diplomatic Dispute Over E-Commerce in Mexico

Mexico is embroiled in a diplomatic spat between the U.S. and China over Chinese e-commerce apps. The U.S. Embassy urged users to delete these apps due to data security threats, while the Chinese Embassy defended them, criticizing U.S. tariffs that they claim harm Mexican industry. Mexico has responded with new taxes and tariffs to safeguard local businesses from competition.

Mexico is currently at the center of a verbal trade dispute between the United States and China, sparked by criticisms surrounding Chinese e-commerce applications such as Shein and Temu. On March 28, the U.S. Embassy in Mexico released a video advising Mexican users to remove these Chinese apps, highlighting concerns about data security and the adverse effects on local industry.

In the video, businessman Andrés Díaz Bedolla, founder of Yumari, pointed out the legal troubles facing these applications, including class-action lawsuits in the United States for data theft. He asserted that Chinese retailers often sustain considerable losses to undermine local competition—stating they might incur losses of up to $30 per sale, thereby threatening Mexico’s economic growth.

In response, the Chinese Embassy in Mexico issued a statement, rejecting the U.S. charges and labeling them as deceitful. The message criticized U.S. tariffs, referring to them as hegemonic practices that hinder Mexico’s industry and impede its sovereignty. They urged the U.S. to cease its unfounded claims against Chinese commerce.

Moreover, on January 1, Mexico introduced a tax on products imported through e-commerce platforms, resulting in 19% tariffs on companies like Temu and Shein. Following this, Mexico also instituted a 35% duty on finished textile imports, intended to shield local manufacturers from cheaper products coming from countries lacking a trade agreement.

President Claudia Sheinbaum indicated that these digital apps contribute to significant economic challenges in Mexico, citing government data that reported an 8% reduction in textile production and the loss of 20,000 jobs in 2024. In an attempt to offset the impact, AliExpress, Shein, and Temu began offering discounts on shipments to Mexico.

The ongoing rhetorical conflict between the U.S. and China over e-commerce applications highlights significant concerns about data security and its effects on the Mexican economy. Initiatives such as tariffs and taxes have been implemented by Mexico to protect local industries, alongside supported anecdotes from business leaders. As both nations respond to each other, the implications for Mexican commerce and digital engagement remain pivotal.

Original Source: mexiconewsdaily.com

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