On October 9, Mexican President Simboom suddenly made a new statement, once again proposing to first sit down with the Chinese side and talk about tax increases, etc. Talk about an eye, and then advance the subsequent legislative process.
The beginning of the story is an "adventurous temptation" of Mexico between China and the United States.
Just a month ago, the Simboom government submitted a tariff reform proposal to parliament, which plans to impose tariffs on other products such as automobiles, textiles, clothing, steel, and so on, ranging from 10 to 50 percent.
The objective of the proposal is clear, mainly coming from China, and while Mexico gives reasons to say it is to “protect the indigenous industry”, it is clear that the more critical “push” behind this comes from the United States.
After Trump regained power, he pressured Mexico to raise tariffs on Chinese imports.
In addition, Trump has previously threatened to mention tariffs on Mexican goods at 30 percent, although Sanchez said it would be suspended for 90 days, but this "buffer period" is about to expire at the end of October, and the "tariff bar" hanging on Mexico's head could fall at any time.
It is not difficult to see that Mexico's sudden intention to increase taxes on China is very clear, and it is undoubtedly a "vote certificate" to the United States.
Of course, China will not give Mexico this opportunity. The warning to Mexico is not just verbal, but decisively takes a "beating": on the one hand, it launches an anti-dumping investigation against imported pecan originating in Mexico.
Mexico's Beagle's exports to China last year exceeded $800 million, accounting for 35 percent of its total exports of the product, if the investigation settles on the dumping, relevant companies will face high anti-dumping duties, and the entire industry may be in trouble.
At the same time, China has also launched an investigation on trade and investment barriers simultaneously, and "framed" Mexico's tax increase targets against China this time, such as textiles and automobiles, all of which are within the scope of the investigation.
According to the rules of international trade, China can promote bilateral negotiations in the follow-up, and it can also upgrade the case to the dispute settlement mechanism of the World Trade Organization. This move is equivalent to leaving enough "backup" for China's follow-up response.
The Chinese side, however, quickly triggered a chain reaction within Mexico.
The first to shake was Parliament, where the leader of the National Revival Movement, Montréal, openly revealed on October 8 that Parliament had “suspended” the consideration of the tariff proposal and plans to resume it by the end of November.
Immediately afterwards, Simbaum continued to express that he wanted to talk well with the Chinese side, and it is clear that she still has a little "luck" psychology, and does not want to completely blame China and make a "good deal" gesture.
In the end, it was China’s harsh warning that made her recognize one thing:
On the one hand, the repeated threat of the United States, even if it does not necessarily get long-term benefits; on the other hand, China, a stable trading partner, once the relationship breaks, losses are far more than expected.
China has also made clear its attitude with actions. If Mexico does not seize the opportunity and recognize the situation clearly, it will have to bear the consequences.
More importantly, this tariff storm is also a "wake-up call" for all countries caught in the game of great powers:
Don't try to sacrifice China's interests in exchange for the so-called "favor of power". China does not take the initiative to pick things up, but it is never afraid of things. As long as someone dares to touch the red line of interests, they must pay the corresponding price.
I have to say that a retreat will only make the other party feel "organically multiplied" and intensified, only with a firm will to fight and countermeasures to keep the bottom line, can make the other party "wake up", in international exchanges, strength is always the best "passport".
However, if the Mexican side really wants to talk with the Chinese side, do not have unrealistic fantasies, and there is only one option before them, that is, do not harm China's interests, do not do this, then everything will be exempt from talk.