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China / Society

Mexican president invites Chinese investment

By Zhao Shengnan (China Daily) Updated: 2014-11-14 08:06

Pena Nieto announces $2.4 billion fund for infrastructure construction

Mexico welcomes participation by Chinese enterprises in building infrastructure and hopes to launch a $2.4 billion investment fund with China to support infrastructure, mining and energy projects as soon as possible, Mexico's president said on Thursday.

Enrique Pena Nieto's remarks in Beijing followed Mexico's abrupt rescission of a $3.75-billion high-speed rail deal that had been awarded to a Chinese-led consortium.

Observers said the unexpected move last week does not mean that Pena Nieto's administration is less willing to cooperate with China. The Latin American country, which is focusing on reviving and reforming its economy, views China as a key partner.

As proof of this goal and the nations' close ties, President Xi Jinping and Pena Nieto oversaw their countries' signings of more than 10 agreements in the Great Hall of the People on Thursday. The agreements included financing, investment, energy and technology, among other fields.

Pena Nieto also said three Chinese firms will invest up to $5 billion to finance projects for Mexican oil company Pemex, including the Ramones pipeline.

Xi said China and Mexico, two developing countries at a critical stage of reform and development, provide opportunities for each other.

Mexican president invites Chinese investment

He said China welcomes more Mexican products in the Chinese market, and he called for both sides to strengthen their cooperation in finance, trade, investment, infrastructure, energy and high-end technology.

Pena Nieto said Mexico hopes to promote connectivity and welcomes Chinese enterprises' participation in the nation's reform, especially its infrastructure construction.

"Now Mexico-China relations are broader, more stable, more productive and more beneficial for our people," he said.

Yang Zhimin, an expert on Latin American studies at the Chinese Academy of Social Sciences, said China and Mexico are using each other's advantages to improve their cooperation, the pace of which is slower than that between China and Latin America generally.

"China has the money to invest and enterprises that are looking forward to going global, while Mexico needs foreign investment to upgrade its infrastructure and provide a stable market for its energy production," Yang said.

China is Mexico's second-largest trading partner. Trade between the two countries was $36 billion in 2012, more than seven times the level it was in 2003.

After adjusting his schedule at home, Pena Nieto arrived in Beijing on Monday to attend the Asia-Pacific Economic Cooperation Economic Leaders' Meeting and pay a state visit to China. Thursday's meeting was the fourth between Xi and Pena Nieto in two years.

Yang said the frequent meetings showed Pena Nieto's friendly posture toward China. The administration sought to foster ties with China to boost development, but it also encountered a lot of pressure when carrying out reforms.

"Chinese enterprises have to know enough about its domestic environment if thinking of investing," Yang said.

The canceled consortium was led by China Railway Construction Corp and included Mexican companies and Chinese train maker CSR Corp.

China has expressed shock at the cancellation. Premier Li Keqiang told Pena Nieto this week that Chinese firms should be treated fairly.

Reuters contributed to this story.

zhaoshengnan@chinadaily.com.cn 

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