China and Mexico to launch US$2.4b fund for mining, energy projects
China and Mexico agreed to develop close, long-term ties as the two countries' leaders met in Beijing , just days after Mexcio abruptly scrapped a US$3.75 billion high-speed rail deal.
China and Mexico agreed to develop close, long-term ties as the two countries' leaders met in Beijing yesterday, just days after Mexcio abruptly scrapped a US$3.75 billion high-speed rail deal awarded to a Chinese-led consortium.
In talks with Mexican President Enrique Peña Nieto, President Xi Jinping said the two countries had made "speedy progress" and "substantial achievements" in bilateral cooperation in the year since his visit to Mexico, Xinhua reported.
He also said the countries offered each other development opportunities. "As major developing countries and emerging economies, China and Mexico face similar challenges as we both are at a crucial stage of growth and reform," Xi said.
Peña Nieto said Mexico and China would set up a US$2.4 billion investment fund to support infrastructure, mining, and energy projects. Three Chinese firms would also invest up to US$5 billion to finance projects for Mexican oil company Pemex, including the Ramones pipeline to import natural gas from the United States.
But he did not mention the scrapped high-speed railway contract, which had been granted to a consortium led by Chinese rail builder China Railway Construction Corp and included Mexican companies and Chinese train maker CSR Corp. Mexico rescinded the contract last week, citing "doubts and concerns" about the winning group. China expressed shock at the cancellation, and Premier Li Keqiang told Peña Nieto this week that Chinese firms should be treated fairly. The trade ministry said on Wednesday that it believed there were legal grounds for compensation after the agreement was cancelled.
Since the Mexican leader took office in late 2012, he has sought to forge closer ties with China following years of rivalry between the two countries seeking to supply the US market.
"Now Mexico-China relations are broader, more stable, more productive and more beneficial for our people," he said.
The two presidents witnessed the signing of 14 pacts, including a China Development Bank deal with Bancomex and Pemex for petroleum projects, as well as one between Industrial and Commercial Bank of China and Pemex and Chinese oil giant CNOOC. No details of any of the agreements were given.
