Mexico offers China US$300b in infrastructure deals
Latin American country is seeking Chinese partners for US$300 billion of projects, providing investors a back door for entry into the US market
Mexico is looking to China to boost its economy while offering Chinese companies a share of US$300 billion of infrastructure projects being planned for the country, which could serve as a back door for mainland manufacturers to export their goods to the United States.
"Mexico requires large investments in infrastructure, such as oil platforms, trains, ports, bridges and highways. China has premier quality in infrastructure and time-to-market delivery," said Banco Interacciones managing director Fernando Moreno, who is in Beijing seeking mainland investment and building relations with potential Chinese partners.
Mexico has a large border with the US. There is going to be a lot of interest from Chinese companies in putting up factories to supply to the US market. This infrastructure can help
"Mexico has a large border with the US. There is going to be a lot of interest from Chinese companies in putting up factories to supply to the US market. This infrastructure can help.
"Our bank is looking for Chinese industrial companies to invest in Mexico to supply the US market."
Banco Interacciones is Mexico's largest infrastructure-financing bank. Under the North Atlantic Free Trade Agreement, there are no tariffs on most goods moved between the US and Mexico.
Previously, Mexican factories that exported to the US were seen as competitors by Chinese manufacturers.
As one example of a Mexican project seeking Chinese investment, Pemex, the state oil monopoly, will require 52 oil platforms in the Gulf of Mexico in the next six years. Each platform would cost about US$280 million, Moreno said.