Recently the Mexican government cancelled and then annulled a $3.8 billion contract with a consortium led by the China Railway Construction Corporation (CRCC) to build a high-speed train between Mexico City and Querétaro. The reason was that the consortium included Constructora Teya, a company with close ties to President Peña ... including financing an expensive house for his wife. More to the point, Alstom, Siemens and Bombardier all complained that they did not have time to submit bids.
But don’t worry! New bids will be solicited over the next six months. CRCC will bid. The Chinese government appears to be a little upset, but they’ll live.
The China in Latin America blog worries that China has a long memory for these sorts of slights. I am not as worried. There has never been any intimation that the China-Mexico relationship is about anything other than business. As political risk goes, this is minor. And if turns out that the Canadians, French or Germans can provide a better product, then Mexico should go with them. In short, I am not worried.
And the train is a good idea. Unlike the Argentine tren bala, this train has the traffic to support it (and actual studies to show it) and it will be a commercial operation. Moreover, it can be extended further to Guadalajara, a much bigger city than anywhere the Argentine high speed train might have gone.