With the decline of their northern neighbor, Mexico is ratcheting up strategic discussions with the biggest banker in the world - China. And as noted below, China is anxious to expand co-operation in Mexican mining.

Wise move for Calderon - VHF

-

Strategic Dialogue With Mexico Will Strengthen Ties

By Li Xiaokun (China Daily)

Updated: 2008-07-12 09:06

President Hu Jintao and his Mexican counterpart Felipe Calderon Hinojosa announced the establishment of a bilateral strategic dialogue mechanism on Friday, a further step to facilitate communication between the two emerging economic powers.

"I believe the strengthening of our cultural, economic and diplomatic relations jointly decided by the two governments will further push forward the development of our countries," Calderon said.

Mexico will always be a trusted friend of China in Latin America, said the Mexican president.

China has set up similar mechanisms with a number of countries, a new channel of interaction between Beijing and its overseas partners.

Sino-Mexican business ties have witnessed a dramatic upsurge in recent years, with Mexico becoming China's second-largest trading partner in Latin America in 2003 and China becoming one of Mexico's main trading partners in Asia.

"The Mexican people have received great material benefits from the cheap and fine Chinese goods, we welcome more Chinese products to enter the Mexican market," Calderon said.

Mexico will resolutely adhere to the one-China policy, he said, adding his country would like to "exert its strength" to participate in the reconstruction of Sichuan province.

President Hu thanked Calderon for his country's understanding and support on the question of Taiwan and Tibet-related issues and its assistance in post-quake reconstruction efforts.

Beijing will encourage competent Chinese firms to engage in the infrastructure construction of Mexican ports, highways and hydropower stations, he said.

He also urged the two sides to expand cooperation in various industries including mining, telecommunications and fisheries, as well as to conduct "concrete cooperation in the entire energy section including new energy and renewable energy".

After the talks, senior officials from both sides signed agreements on extradition, pork quarantine, investment improvement and protection, as well as social assistance and welfare.

The two sides also signed the bilateral 2008-2010 Social Development Cooperation Plan.

This is the second meeting between the two leaders in three days, after they bid farewell at the G-8 outreach session that concluded on Wednesday in Tayako Japan.

Calderon arrived in Shanghai on Wednesday night, kicking off a four-day state visit to China, the first since he took office in December 2006.

Calderon also held talks with top Chinese legislator Wu Bangguo and Premier Wen Jiabao on Friday.

The Mexican president also met Taiwan tycoon Guo Taiming, president of Foxconn Technology Group.

Chinese President Hu Jintao (R) shakes hands with Mexican President Felipe Calderon Hinojosa at the Great Hall of the People in Beijing, capital of China, July 11, 2008. [Xinhua]