Brazil is drafting a series of measures to protect its industries, saying it will regulate auto imports and launch a probe into illegal trade practices concerning Chinese goods.

Brazil's Minister of Development, Industry and Foreign Trade Fernando Pimente says the strong Brazilian currency inflicting losses on domestic industries can't be overlooked.

He vowed to devise protective measures, starting with an inspection of Chinese blankets that are imported via Paraguay and Uruguay. The probe will expand to other sectors in the coming months.

Earlier this month, Brazil introduced a permit system and tightened import terms on finished cars, auto parts and tires.

Brazil's protectionist stance may negatively affect South Korean carmakers.