China invests in Mexican renewable energy giant

China continues its energy expansion in Latin America. This time the Chinese state energy giant, State Power Investment Corp (SPIC), acquired Zuma Energía, Mexico's largest independent renewable energy company. An interesting move considering that renewable energy is going through a difficult time in Mexico, under an administration that has concentrated its investment in fossil fuels and, specifically, in the oil company Pemex.

Martha Delgado Peralta, Undersecretary for Multilateral Affairs and Human Rights, celebrated the news today at the China in Ibero-America forum, organized by LPO. Delgado explained that there is a profound collaboration with China, especially during the pandemic.

She highlighted in particular that the acquisition of Zuma demonstrates the dynamism between both nations and China's interest in investing in the sector and in Mexico.

The Chinese company, meanwhile, explained in a statement signed by its President Qian Zhimin that the expansion into Mexico, the first they are doing in this sector, "represents our continued commitment to support the generation of clean and renewable energy, as well as confidence in the Mexican economy".

"Zuma will radiate operational support and investment to neighboring countries," he said.

Other Chinese companies, according to Bloomberg, have made similar investments in the region in fields such as logistics, services and telecommunications. State Grid recently announced the purchase of 96% of the Chilean-Spanish company Naturgy Energy Group SA.