CHINA Development Bank (CDB) and Mexico's development bank that is in charge of financing international trade (Banco Nacional de Comercio Exterior) have announced the continuation of a co-operation agreement to finance projects in Mexico.

This is the renewal of an agreement signed in November 2014 when Mexican President Enrique Pena Nieto visited China. The new deal was signed in Mexico City on November 17 by Bancomext director general, Francisco Gonzalez, and CDB executive vice president Zhang Xuguang.

The two banks have agreed to co-finance projects in Mexico in key sectors such as telecoms and infrastructure, a statement from Bancomext said.

“Both institutions seek to co-finance projects in Mexico, co-ordinate strategies to assist high priority sectors, and exchange information on investment niches and programmes,” the statement added.

CDB is the world's largest development finance institution. Bancomext also co-operates with China Eximbank and China Export & Credit Insurance Corporation (Sinosure). And it has accessed credit lines from both Bank of China and ICBC.

In early November Bancomext officials attended the China-Latin America and the Caribbean International Exposition held in Zhuhai.

The opportunities for Chinese companies in Mexico have increased as a result of the tense relationship between Mexico and its neighbour the United States. President Trump has been severely critical of US companies taking advantage of lower wage costs and moving production to Mexico. In response, Mexican government entities, both at national and state level, are more willing to look towards Asia for financing on major projects, and to consider awarding contracts to Chinese companies.