Failures derail Mexico’s hopes of getting a surge of Chinese investments

Since taking office in December 2012, Mexican President Enrique Pena Nieto has sought to deepen ties with China.
Since taking office in December 2012, Mexican President Enrique Pena Nieto has sought to deepen ties with China.

By Gabriel Stargardter / Reuters

Chinese companies are turning their backs on Mexico in a chill that could last years, spooked by the cancellation of two high-profile projects that were supposed to usher in a new era of business between the manufacturing rivals.

Mexico is desperate to get the relationship back on track after its shock scrapping of a multi-billion-dollar high-speed train contract originally awarded to a Chinese-led consortium earlier this year, a move that angered Beijing.

Seeking to wean itself off dependence on the United States and compensate for an oil slump that hammered public finances, Mexico has sought to involve China in a new Mexico City airport, a multi-billion dollar mobile wireless network and its newly opened energy sector.

But after the train debacle and the acrimonious scuttling of a Chinese retail park planned in the resort of Cancun, some firms in China, whose economy is cooling, are deeply wary of Mexico and unlikely to ramp up business with Latin America’s second largest economy any time soon.

http://www.reuters.com/article/2015/04/20/mexico-china-idUSL2N0WS2LA20150420

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