China-Mexico trade sees diversified development

Forty years since China and Mexico established diplomatic relations in 1972, bilateral trade volume rocketed from 13 million US dollars to 40 billion in 2012. Economic cooperation is becoming more diversified, as large numbers of Chinese enterprises turn their investment to Mexico.

Here in Abano in northeast Mexico, is a drilling machine of Sinopec, one of China's biggest oil companies. For over 6 years Sinopec has been cooperating with Mexico's National Oil Company. Earlier this year, they signed a new 30-year contract - the "comprehensive incentive program". Under this, 2 or 3 drilling teams will be established, and about 600 oil wells will be drilled in the next 8 to 10 years.

Mexico's oil exploration industry has been going for more than 100 years, and has faced no shortage of problems. Many abandoned oil fields are inadequately explored due to technological limitations. Now they've been revived by advanced exploration and drilling technology from China. Crude oil is again being produced, which increases the production of Chinese involved oil fields by 2.6 times.

About 50 Chinese companies have invested in Mexico, according to records of the Chinese embassy in Mexico. Those companies operate in a range of fields including renewable energy, automobile and infrastructure construction, have their business diversified and feature high-tech cooperation with Mexican companies.

Mexico is China's second largest trading partner in Latin America. While China is Mexico's second largest trading partner in the world, just after the United States. Trade between the 2 countries are mostly of manufactured goods including mining machinery, computer and auto spare parts. Sino-Mexican economic relations are complementary and of mutual benefit, with only a very small part in rival.

Chen Yumin, Economic Counselor, Chinese Embassy in Mexico, said, "Although China enjoys a big surplus in China-Mexico trade, only 20% of Mexico's imports from China are for its domestic market. The rest of up to 80 percent are exported to other countries after processing. This is actually a win-win pattern."

Economic and political relations between the two countries have seen much progress these years. And this will no doubt be further enhanced by President Xi's visit.