Monday, June 3, 2013
China’s president visits Latin America, eyes Mexico’s plans to open energy sector
President Xi Jinping’s three-day visit starting Tuesday comes as Mexico debates opening its highly regulated energy sector to more foreign investment.
“Access to strategic raw materials is key to understanding the dynamic of relations with China,” said Hugo Beteta, director for Mexico and Central America of the United Nations Economic Commission for Latin America and the Caribbean. “Clearly there is an interest by China in Mexican oil.”
The trip is part of a four-country regional tour that ends in the United States. Xi started in Trinidad and Tobago, where he also met with leaders of other Caribbean countries, and he arrives Sunday night in Costa Rica.
China and Trinidad have had diplomatic ties for almost 40 years, and Trinidad is a major trading partner in the Caribbean for China. Costa Rica is the only country in Central America to have diplomatic relations with China.
U.S. trade still dwarfs China’s for the three countries Xi is visiting. But China’s trade with Costa Rica and with Mexico has tripled since 2006, according to the International Monetary Fund.
Relations with Mexico had been chilly in the past, especially when former President Felipe Calderon hosted the Dalai Lama in 2011, something China’s Foreign Ministry said “hurt the feelings of the Chinese people and harmed Chinese-Mexican relations.”
President Enrique Pena Nieto, who took office in December, has been aggressive so far about changing that, and the two new presidents reportedly hit if off on a personal level when Pena Nieto visited China and met with Xi in April. That resulted in an unusually quick diplomatic follow-up, just two months into Xi’s presidency.
During the April talks, Xi said “he is committed to working with Mexican authorities to help Mexico export more,” Mexico’s vice minister of foreign relations, Carlos de Icaza, told The Associated Press.
That’s key for Mexico, because its trade deficit with China is exploding, far surpassing that of any other Latin American nation.
While China is looking to assure supplies of raw materials, Mexico is looking to diversify its trade and investment, which have long been dominated by its superpower neighbor to the north.
“In the new global geopolitical and economic map, China is, and I think it has arrived to stay, the world’s second economic power,” De Icaza said. Mexico “has to understand and strengthen relations with a nation that has such great strategic value.”
De Icaza said the countries hope to sign at least a dozen agreements in the fields of trade, energy, tourism, science and technology during Xi’s visit.
http://www.washingtonpost.com/business/chinas-president-visits-latin-america-eyes-mexicos-plans-to-open-energy-sector/2013/06/02/6db2e6ce-cba2-11e2-8573-3baeea6a2647_story.html
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