<P> China has attempted to expand its investment and trade in Mexico in recent years, similar to China's moves elsewhere in Latin America and Africa . China was set to construct a $200 million, 1,400 - acre mega-mall, Dragon Mart, near the beach resort of Cancún . The mall would have been not only a major emporium of Chinese goods, but also a gateway for Chinese goods elsewhere in the hemisphere . Mexican environmentalists have opposed the project on the grounds of environmental degradation of sensitive wetlands . The city of Cancún initially turned down the permit for the Chinese to build, but they appealed to the state of Quintana Roo and the federal government, which granted the permit . The government of Enrique Peña Nieto reversed that decision in January 2015 . Mexico's environmental protection agency's head, Guillermo Haro, has cancelled the contract and imposed a fine of $1.5 million for damage already done . The mega-mall was likened to a permanent trade show, with booths for 3,000 exhibitors . Mexican industrialists were pleased with the government's decision because the mega-mall was expected to flood the Mexican market with Chinese goods . Environmentalists hailed the decision as a victory and a precedent for evaluating future projects . In November 2014, the Mexican government cancelled a contract for China to build a bullet train in Mexico . One of the successful bidders on that contract "sold a mansion to the wife of the president on favorable terms". The award was rescinded and a new bidding was to take place in 2015, but the government has "indefinitely suspended" the project . </P> <P> Mexico has again felt the negative impact of the drop in oil prices, with the government cutting planned spending in 2015 and likely 2016 as well . Estimates are the one - third of Mexico's revenues come from petroleum, so that with oil prices going from $100 / barrel in mid-2014 to $38 / barrel in January 2015, the government is squeezed financially . The Minister of Finance, Luis Videgaray, moved to curtail spending by cancelling a rail project in Yucatán, shelving indefinitely a joint China - Mexico bullet train project, and there were to be cutbacks in the Mexican state oil company, Pemex, and in the education ministry . Gas prices for Mexicans have risen, and the U.S. dollar is strengthening against the peso, so that Mexican consumers are under pressure . </P>

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