Teaching Comparative Government and Politics

Thursday, November 13, 2014

Perhaps China should not have been surprised

The Chinese president is heading a well-publicized campaign against corruption in China. Why should he be shocked to see the Mexican president react to exposure of a version of guanxi?

Mexico Cancels $4.3 Billion China Deal on Doubts Over Bid
Mexico will open a new competition for its first high-speed rail project before month’s end after scrapping the winning $4.3 billion Chinese-led bid, citing “doubts and concerns.” …

The surprise revocation on Nov. 6 came three days after the project was awarded... The contract for China Railway Construction... Corp. and four Mexican partners marked Mexico’s first large investment in transportation by a Chinese firm…

Cloud Hangs Over Mexico First Lady’s House
Mexican President Enrique Peña Nieto, who has built a reputation as a reformer, faced questions about his family’s purchase of a home held by a company whose owner has won multiple government projects during the president’s administration and his previous term as a state governor.

The revelations, first published online by a prominent Mexican journalist, come just days after the government abruptly canceled a $3.7 billion high-speed train to ensure there were no doubts about the project, officials said. The contract was won earlier in the week by a Chinese-led consortium that includes a construction firm tied to the developer holding the title to the first lady’s house…

The house controversy could also revive memories for many Mexicans of past corruption scandals under the ruling Institutional Revolutionary Party, or PRI, which ran the country for 71 years…

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