China, Mexico launch $2.4 bn investment fund
November 14, 2014, 4:46 am

Chinese President Xi Jinping (2nd L), his wife Peng Liyuan (1st L) and Mexico’s President Enrique Pena Nieto (2nd R) and his wife at an even in Beijing on 13 November 2014 [Xinhua]

Nieto met Chinese President Xi Jinping and signed 14 agreements in finance, trade, investment, infrastructure, energy and technology, said state media.

Following talks the two sides have launched a $2.4 billion investment fund to support infrastructure, mining, and energy projects in both countries. A $5 billion oil deal was also on the agenda.

“Under the direction of high-level joint governmental investment groups, the countries officially announced the first ever China-Mexico investment fund worth a total of $2.4 billion. The fund will support companies from both sides investing in infrastructure, mining, energy, engineering, tourism, high-tech,” said the Mexican President.

President Enrique Pena Nieto has gone out of his way to cultivate ties with China. Nieto has met President Xi Jinping seven times since the latter assumed office.

During a joint news conference following talks, Xi Jinping said China is set to boost ties with Mexico.

“China has always treated the development of the two countries’ relations from strategic and long-term perspectives. We are willing to work together with Mexico to realise common development in order to make bigger efforts for strengthening friendly relationships, unity and cooperation with Latin American and Caribbean countries and promoting peace, stability and prosperity of the world,” says Chinese President Xi.

Just ahead of Nieto’s state visit, however, Mexico revoked a high-speed rail contract from a China-led consortium after lawmakers alleged the railway contract was rigged.

China has expressed shock at the cancellation, and Chinese Premier Li Keqiang told Nieto this week that the bidding result is just and legitimate, adding that Chinese firms should be treated fairly.

Meanwhile, the two sides also announced on Thursday that the Ramones pipeline and other projects of Mexican oil company Pemex will receive $5 billion in funding from Chinese firms.

TBP and Agencies