Published By : 29 Oct 2015 | Published By : QYRESEARCH
China Communication Construction Company has planned to build an industrial park in Mexico that is expected to be one of the biggest Chinese investments in Latin America. Liu Yueping, America’s chief of CCCC and the government of the Western state of Jalisco, recently signed a memorandum in Guadalajara, Mexico to develop a new industrial park. This industrial park is predicted to be the support system for China to supply construction equipment to the North American market. China and Mexico have agreed to study possible locations for the construction of the industrial park. The industrial park would have easy access to domestic manufacturing companies.
The industrial park is expected to create new job opportunities for not only the Mexican people but also for people from other countries. Officials said that the industrial park will be developed in a 500 hectares area with the Chinese government paying for the half area and the Jalisco government paying for the rest. The feasibility study will decide about where exactly the industrial area will be built, how much China will invest, and which Chinese companies will participate. Guadalajara is the second largest city in Mexico and holds a strategic position between Manzanillo and the central Mexican industrial belt, which is connected to the U.S.
Last year, President Enrique Pena Nieto declined a US$3.75 bn project that China had planned in Mexico. The cancellation caused disappointment and happened just before Pena Nieto had planned his first visit to China. This affected direct foreign investment in Mexico. From 1999 till 2015, China foreign investment in Mexico has only been US$380 mn. The industrial project is expected to patch economic fences between China and Mexico. China’s quick economic growth since the past two decades has resulted to a sharper rise in the labor costs than what it was in Mexico, making Mexico more attractive for the manufacturers.