China is demanding that Mexico adequately compensate Chinese companies that bid on a proposed high-speed railway in the North American country, a project the Mexican government just announced it would suspend because of falling oil prices.
Last Monday the Chinese government called on the Mexican government to respect the legal rights of Chinese firms after the Mexican finance ministry suspended the controversial $3.7 billion high-speed rail project on January 30.
Luis Videgaray Caso, Mexico’s secretary of finance and public credit, announced on that day that the “indefinite suspension” was the result of falling oil prices and the need to cut public spending. The federal government derives about a third of its revenue from the oil sector. The minister added that the project to build a $9.2 billion international airport in Mexico City would not be affected.
„We feel really sorry about the decision. Chinese companies have invested much in bidding for the project,” said China’s National Development and Reform Commission (NDRC) in a statement.
Photo: www.ecns.cn
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