Diplomatic Tensions: U.S. and China Clash Over E-Commerce Apps in Mexico

The U.S. and China have engaged in a verbal dispute through their embassies in Mexico over the use of Chinese e-commerce apps such as Shein and Temu. The U.S. Embassy advised users to delete these applications due to data privacy concerns, while the Chinese Embassy accused the U.S. of spreading misinformation. Mexico recently imposed tariffs on these apps to protect local industries, citing significant impacts on textile production and employment.

Mexico currently finds itself at the center of a verbal trade dispute between the United States and China. The tension arose when the U.S. Embassy in Mexico released a video on social media, advising Mexican users to delete Chinese e-commerce applications such as Shein and Temu, citing significant data security risks. The video emphasized that these applications not only pose threats to personal information but also adversely affect domestic industries in Mexico.

The video featured Andrés Díaz Bedolla, a businessman and the founder of Yumari, who highlighted that these Chinese retailers are embroiled in legal disputes in the U.S. due to data theft allegations. Díaz Bedolla asserted that these companies engage in aggressive pricing strategies, often willing to incur losses to outcompete local businesses. He urged the Mexican population to reconsider using these applications for the country’s economic growth and development.

In response, the Chinese Embassy in Mexico posted a rebuttal on social media, accusing the U.S. of spreading misinformation and describing American tariffs as harmful to Mexican industry and sovereignty. China’s message criticized the so-called “hegemonic practices” of the U.S., particularly regarding trade tariffs.

Recently, Mexico enacted a tax impacting products imported via international online platforms, taxed at 19% due to the absence of a trade agreement with China. This move comes amid a broader strategy to safeguard Mexican producers from the influx of low-cost Chinese goods, particularly in the textile sector, where a significant 35% duty was imposed on certain imports without trade agreements.

This strategic tariff implementation aims to stabilize local production amidst claims of substantial losses in the textile industry, with government data reflecting an 8% decline in production and the loss of about 20,000 jobs in 2024. To mitigate the adverse effects of e-commerce on local industries, Mexican authorities have restricted the number of monthly deliveries from these foreign platforms.

The ongoing diplomatic exchange between the U.S. and China within Mexico highlights the complex dynamics of international trade and e-commerce applications. As both nations vie for influence, Mexico must navigate the associated risks and benefits. The recent tariffs and the call for elimination of foreign applications underscore the significance of protecting local industries while addressing consumer choices and data privacy concerns. Ultimately, the resolution of this situation will require careful consideration of economic growth and the stability of the domestic market.

Original Source: mexiconewsdaily.com