Quintana Roo, Mexico - The Dragon Mart, a trade mart being built in the southeastern Mexican state of Quintana Roo with Chinese investment, has been ordered to shut down due to the environmental damage caused by the project, federal environmental officials said on Monday.

The project, located in the El Tucan district of the city of Benito Juarez, was ordered to close down following a visit by federal environmental inspectors who determined that developers had failed to comply with orders recently issued by officials, the director of the Profepa environmental protection agency, Guillermo Haro, said in a press conference.

Developer Real Estate Dragon Mart was building the trade mart in a jungle area that is home to wildlife and a coastal ecosystem that are "all protected" by environmental laws, Haro said.

The project "has affected the area's biodiversity" and the "productive capacity of the forest lands," the Profepa chief said.

The developers of the Dragon Mart project planned to build 722 residential units and 20 warehouses, as well as 3,000 spaces for businesses, on 503 acres.

The Attorney General's Office and the Environment Secretariat's regulatory unit have been advised of possible legal violations by the project's developers, Haro said.

Profepa has already imposed fines totaling $1.5 million for damage caused at the site to date, all of which have been appealed by the company, Haro said.

Real Estate Dragon Mart planned to invest $180 million in the trade mart, which has been the target of lawsuits and complaints from different groups, including Mexican businesses, who fear the project will lead to unfair competition from Chinese manufacturers.

Dragon Mart was designed to be an exhibition center for merchandise from China, providing an opportunity for companies from the Asian nation to make contacts in Mexico and Central America.

Real Estate Dragon Mart is 45 percent owned by Carlos Castillo, with Monterrey Cancun Mart holding a 45 percent interest and Chinamex Middle Investment & Trade Promotion Center owning a 10 percent stake.