China plans to play a dominant role in establishing a huge shopping center in Cancun, Mexico, to promote bilateral trade between the two countries, industry sources said on Wednesday.

Investment in the project, to be called "Cancun Dragon Mart", is expected to reach 10 billion yuan ($1.54 billion), with China taking a 40 percent stake and Mexico and US government each contributing 30 percent.

Sponsored by the foreign trade development bureau under the Ministry of Commerce, Cancun Dragon Mart will be developed by Chinamex Middle East Investment & Trade Promotion Center Co Ltd and Chengkai (Beijing) Investment Co Ltd.

"A Chinese commodity fair will be held in the shopping center after Spring Festival in 2013," said Hao Feng, chairman of Chinamex Middle East Investment & Trade Promotion Center Co Ltd.