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Mexico Cancels High-speed Train Deal With Chinese

FILE - A CRH high-speed train leaves the Beijing South Station for Shanghai during a test run on the Beijing-Shanghai high-speed railway in Beijing, China.

Mexico has withdrawn a multibillion-dollar deal with a Chinese consortium to build the country's first high-speed passenger train.

Mexico revoked the $3.74 billion contract with the China Railway Construction Corporation on Thursday after complaints from lawmakers about the bidding process.

China Railway was the only firm to submit a bid.

The Transport Ministry said a new auction for the contract will be held. The date of the auction was not immediately clear.

Mexico City and Queretaro.
Mexico City and Queretaro.

Mexico has sought to forge closer business ties with China, but the revocation of the project is an embarrassment as it comes just days ahead of President Enrique Pena Nieto's visit to China.

The Transport Ministry announced the deal Monday to build the 201-kilometer link between the capital, Mexico City, and the central city of Queretaro.