The 1.2 billion dollar China-Mexico private equity fund managed by a World Bank unit announced that it was investing 140 million dollars in a U.S.- backed energy company in Mexico. Is this beginning of greater economic investment by Beijing in Mexico?

In a bid by Beijing to increase investment in Mexico, a 1.2 billion Chinese-Mexico Equity Fund run by the World Bank has made its first investment in a U.S.- backed energy firm, Citla Energy.

Unlike other countries in Latin America, China has not had such a strong presence in Mexico but as its need for oil expands, the country has become more attractive- especially with the recent oil price slump-making it a bargain for Beijing. Just last year, the government opened up its state-run oil company Pemex to private investors for the first time in over 70 years.

"If you go back five or ten years ago, Mexico had an emerging market that did not compare well to other emerging market. With these reforms and with the stability of Mexico's economic growth today we are comparing very favorable versus other emerging market economies that have not done well in the recent past. Capital is very high in Mexico that is why we have to be very quick and very savvy in the investments that we do so we can have a good return when there is a lot of competition," said Cesar Urrea China-Mexico private equity fund.

The investment in Citla Energy shows that Beijing is looking across continents in its quest for energy but it's still got a long way to go. Chinese investment in Mexico only accounted for just 0.2 percent of all foreign investment in the country in 2015.

"Chinese Investment in Mexico is relatively small. We don't have material Chinese investment yet. We are very far. Transport costs for hydrocarbons make a big difference. So if British oil or Iranian oil were abundant and cheap, why would you buy Mexican oil, which are miles and miles away I mean, the fact that we have such a close commercial relationship with the United States comes from the fact that we share a huge border," said Miriam Grunstein economist.

But economic insiders believe this small investment could lead to something much greater in the future. Officials from the World Bank expect to see a return in their investment in six years and are hoping to create a second Chinese-Mexican fund. In what they believe is the start of a potentially lucrative economic relationship between the two countries.