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China & Mexico Sign "Unprecedented" Economic Agreements; Tourism on the Rise

12 June, 2013

Chinese President Xi Jinping and Mexican President Enrique Peña Nieto have signed a series of new trade agreements this week,deepening economic ties and broadening relations between the two countries.

“After meeting privately,China’s Xi Jinping and Mexico’s Enrique Peña Nieto said they are transforming the relationship into a ‘strategic partnership," writes ABC News. “The leaders signed a dozen memorandums of understanding and cooperation agreements in areas including energy,mining,education and infrastructure.”

The agreements also reportedly provide for the establishment of a high-level business group that will encourage a growing dialogue between China and Mexico,leading to greater investment opportunities for both countries. Finally,the two leaders were able to find common ground and eliminate an ongoing standoff over textiles,which until now has kept both nations embroiled in fruitless litigation.

Also of note,Mexico’s state-run oil monopoly (PEMEX) has obtained a $1 billion credit line that can be used to purchase ships and a variety of offshore equipment. PEMEX has also agreed to work with China’s state-owned Xinxing Cathay International Group to explore building new pipelines that will benefit both countries. Both Peña Nieto and Xi are dedicated to reforming their nation’s policies in order to remain relevant and keep up with the ever-changing global economy.

Following the new agreements,Mexico is now able to sell its pork and tequila to China,which is something the two nations have discussed for several years. China has also agreed to buy more than $1 billion worth of Mexican products and the number of scholarships available for Mexicans to study in China will increase from just 40 to 300 over the next three years.

“Peña Nieto said the new agreements are aimed at balancing trade between the two nations and also seek to increase Chinese investment in Mexico,” writes ABC News. “He said Mexico hopes to become a ‘platform’ for Chinese companies to trade with other nations in the region.”

As further indication that the relationship between China and Mexico is growing rapidly,the Latin American Herald Tribune reported this week that the number of Chinese visitors to Mexico has risen by an impressive 35 percent during the first          quarter of 2013 alone,as compared to the same period in 2012. According to the article,favorite destinations for Chinese visitors to Mexico include Cabo San Lucas,Cancun and Puerto Vallarta.

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