Claudia Sheinbaum was sworn in on October 1 in Mexico City, becoming the first female president in Mexico's history. She quickly introduced a series of economic and energy reform measures that focus on two core areas: the economy and energy. Economically, she aims to improve workers' living conditions by raising the minimum wage and reducing working hours. In the energy sector, she is focused on increasing the proportion of renewable energy and reducing oil production, bringing significant adjustments to Mexico's energy structure. These measures are supported by the ruling party's leftist forces but also face challenges from various sectors.
President Sheinbaum announced that starting in 2025, the annual increase rate for the minimum wage will be set at 12%, which exceeds the current inflation rate and aims to ensure that wages can cover the cost of approximately two and a half basic food baskets. Although Mexico has previously raised the minimum wage, about 40% of the workforce still earns at or below this level. Sheinbaum also proposed a plan to shorten working hours from 48 to 40 hours per week, although this plan requires constitutional amendments and may face resistance from businesses and opposition parties.
In her first public speech after taking office, Sheinbaum announced the goal of increasing the share of renewable energy in total electricity generation to 45% by 2030. To achieve this, she plans to invest $13.6 billion in wind, solar, and hydroelectric projects and to build thousands of kilometers of transmission lines. Additionally, she set a cap on Mexico's oil production for the first time, limiting it to no more than 1.8 million barrels per day to reduce dependence on fossil fuels and promote energy transition.
The renewable energy policies promoted by the Sheinbaum government complement China's strong capabilities in green technology, presenting significant potential for cooperation in renewable energy projects, especially in wind and solar energy. Furthermore, China's experience in infrastructure construction and investment can support Mexico's energy transition goals. However, the reforms of the Sheinbaum government may also face challenges, particularly from pressure from the United States, which could affect the prospects for cooperation between China and Mexico. The U.S. concern over Mexico's relationship with China, especially in trade and investment, may lead to restrictions on Sino-Mexican cooperation.
Picture Source: Reuters/Raquel Cunha