Firms Heading Overseas Should Play by Market Rules
Just as news of the abrupt cancellation of China Railway Construction Corp.'s (CRCC) contract in Mexico was beginning to die down, the global spotlight was once again trained on the country's involvement in overseas development projects, which some have dubbed China's Marshall Plan.
It's worth reviewing CRCC's setback in Mexico. The Mexican government announced in early November it was scrapping the CRCC-led bid for a railroad project, sparking outrage in China. What led to Mexico's about-turn isn't difficult to understand. In August, the Mexican government opened bidding on a project to build the country's first high-speed railroad, but gave companies only two months to submit a tender, in an effort to complete the project by the end of President Enrique Pena Nieto's term in 2017.
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