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"It is not the best time to guarantee our successful participation in this international event," said a statement from Mexico's trade promotion agency.
"The measures recently taken, as much by the organizers as the Chinese government, are unacceptable."
Mexico and China have clashed since the outbreak of the A(H1N1) flu virus, which has killed 48 people in Mexico.
In response to the outbreak China has barred direct flights from Mexico, quarantined dozens of Mexicans who have arrived in the country and banned imports of Mexican pork.
Mexico has advised its citizens not to travel to the country.
Around 30 Mexican firms had been expected to participate.
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"The measures recently taken, as much by the organizers as the Chinese government, are unacceptable."
Mexico and China have clashed since the outbreak of the A(H1N1) flu virus, which has killed 48 people in Mexico.
In response to the outbreak China has barred direct flights from Mexico, quarantined dozens of Mexicans who have arrived in the country and banned imports of Mexican pork.
Mexico has advised its citizens not to travel to the country.
Around 30 Mexican firms had been expected to participate.
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