Latin America has played an important role in absorbing China’s export surge, which is generating concern among local policymakers. But the response is likely to vary across the region. Governments in Mexico and some smaller Central American countries will probably impose strict measures to limit Chinese goods in their markets, not least due to pressure from the US. Further protectionist measures are likely elsewhere in the region too, but these will be smaller in scale and aimed at shifting production to their countries. Their domestic markets will remain more accessible for Chinese firms.
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