November 11, 2014

CORRUPT POLS AND HIGH-SPEED RAIL SEEM TO GO TOGETHER: Corruption Derail’s China’s Rail Plans In Mexico.

Mexico’s President Enrique Peña Nieto has cancelled a lucrative, $3.6 billion contract his country signed with a group of Chinese firms to build a high speed rail system between Mexico City and the industrial hub of Querétaro. The move came as a concession to public perceptions of corruption related to the deal, which was signed so soon after being proposed that alternative firms didn’t have the time to enter bids for the project. . . .

This is a big loss for China. One of the reasons that it invested so much in its own high speed rail system was so that it could market its technology, as well as other infrastructure development projects, abroad. But as this story shows us, Chinese companies may have to change their ways of doing business to land big contracts in the OECD world. In today’s world, corruption isn’t just a domestic issue.

Well, they can always try California, New York, and other third-world parts of the US.

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