A new stage of interaction

What concerns Mexico most is how to narrow the huge trade deficit with China. The trade imbalance is an indisputable fact mainly due to the differences in the two countries' economic structures. To solve the problem, the two sides should adopt a constructive attitude, put more political resources into their economic cooperation mechanism and improve the quality, level and sustainability of their economic and trade cooperation.

Economic and trade cooperation is high on Mexico's agenda and the Mexican business community is eager to gain more market access to China, which is considering expanding imports of Mexico's competitive products, such as agricultural, livestock and fishery products.

The two countries can also expand mutual investment. According to Chinese official statistics, at the end of 2011, China's investment in Mexico was only $264 million, which is less than its investment in some other Latin American countries.

With regard to their economic and trade cooperation mechanism, the two countries can try to set up a China-Mexico cooperation fund to facilitate financing for mutual investment and trade. Mexico has great demand for investment in transportation, agriculture, communication networks and other areas, and China hopes to expand direct investment in Mexico, which will create employment opportunities for local people.

The two sides can also consider starting a feasibility study on building a free trade area. Meanwhile, the Mexican government is actively promoting energy reform and the prospects for energy cooperation are bright.

The two countries should also strengthen consultation and safeguard each other's national interests and the common interests of developing countries in the fields of finance, trade and climate change under the framework of multilateral mechanisms such as the United Nations, the G20, and the Asia-Pacific Economic Cooperation forum.

They should also expand people-to-people exchanges and strengthen cultural and educational exchanges and contacts. Mexico has the most Confucius Institutes in Latin America and the National Autonomous University of Mexico has set up the Mexican Center in China. Cultural and academic exchanges between China and Mexico are frequent and the two sides may consider expanding the number of exchange students. In addition, the two countries should also strengthen public diplomacy to deliver a real and vivid national image to each other's people.

Finally, relations between the two countries must take into account the United States. Because of the complex and asymmetrical interdependence between Mexico and the US, developing relations with the US is the top priority in Mexico's diplomacy. However, it is definitely not a zero-sum game, and the three countries can explore potential areas for future cooperation.

The author is an associate professor at the Institute of Latin American Studies, affiliated to the Chinese Academy of Social Sciences.