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China, France sign big contracts, unite for G20

by Staff Writers
Paris (AFP) Nov 5, 2010
France and China signed major industrial deals worth 20 billion dollars on Thursday at the start of a lavish state visit by Chinese President Hu Jintao, cementing previously strained ties.

Hu also threw China's weight behind President Nicolas Sarkozy's goal of using France's upcoming presidency of the G20 group of the world's largest economies to reform the global financial system.

The contract signings kicked off a three-day visit by Hu that France hopes will result in a massive boost to its high-tech manufacturing exports.

China's deputy foreign minister Fu Ying revealed the scale of the deals to reporters after talks between the presidents and a signing ceremony at the Elysee Palace, where a state banquet was held.

"The visit is going very well. We have had some great successes," Fu told reporters. "The Chinese delegation is totally satisfied and has high hopes for future discussions."

France will after next week's summit in South Korea take on the year-long rotating G20 presidency, during which Sarkozy wants to push major international reforms, and the two leaders showed a united front on the issue.

Sarkozy said in his toast to the Chinese leader at the dinner that his targets were reform of the world monetary system, of financial governance and of raw materials markets.

"I know I can count on China's backing to make progress on three big projects that are essential to keep the world running properly," he said.

In his own toast Hu said: "China supports France in its efforts to ensure the success of the G20 summit next year."

In a statement, the leaders said they wanted to "significantly improve the mechanisms of world economic governance".

Separately announcing details of the contracts, Sarkozy's office said European planemaker Airbus struck a deal to supply 102 airliners to Chinese firms at a cost of 14 billion dollars (around 10 billion euros).

Meanwhile, French nuclear giant Areva signed a contract to supply 3.5 billion dollars' worth of uranium to Chinese power firm CNGPC, Areva chief Anne Lauvergeon told reporters.

She added that Areva had also signed a contract to build a uranium treatment plant in China, but did not cite the amount.

The French president's office said Areva was ready to open up to a Chinese partner the Imouraren uranium mine in northwestern Niger, which it partially owns.

French energy giant Total meanwhile said it was planning to invest two to three billion euros in a Chinese petrochemical plant.

Chinese businesses were due to sign more contracts on Friday at the headquarters of French business association Medef, French presidential officials said.

France and China have had tense diplomatic links in recent years, notably over French meetings with the exiled Tibetan spiritual leader the Dalai Lama, but they maintain important economic ties and relations have warmed since 2009.

Activists and the Socialist opposition complain France has kept human rights off the menu for the visit.

No joint news conference has been scheduled, an exceptional departure from state visit procedures that has been criticised by campaigners who want Hu to be pressed on the issue of human rights.

Campaigners criticised Sarkozy for not speaking out in favour of jailed Chinese dissident Liu Xiaobo, whose Nobel Peace Prize enraged Beijing when it was announced last month.

Fu dismissed the issue, telling reporters: "It's not a subject for discussion between China and France. Liu broke the law and was convicted."

Around 200 activists, many of them waving the banners of Tibet and the western Chinese region of Xinjiang-- the scene of ethnic unrest last year -- gathered by the Eiffel Tower to demand that France raise the rights issue during the visit.

France marked the start of Hu's trip in style by offering him a series of great Bordeaux vintages marking important dates in his life and the history of modern China.

They included 'grands crus' from 1942 (Hu's birth year), 1949 (setting up of the People's Republic of China), 1964 (establishment of French-Chinese relations), 2002 (Hu becoming Chinese president) and 2008 (the Beijing Olympics).

On Friday, Hu was due to re-light the flame at the Tomb of the Unknown Soldier at Paris's Arc de Triomphe and meet with French Prime Minister Francois Fillon before flying south to the Riviera city of Nice.

He is due to hold further talks with Sarkozy there before heading on to Portugal.



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TRADE WARS
China, France sign big contracts, unite for G20
Paris (AFP) Nov 4, 2010
France and China signed major industrial deals worth 20 billion dollars on Thursday at the start of a lavish state visit by Chinese President Hu Jintao, cementing previously strained ties. Hu also threw China's weight behind Sarkozy's goal of using France's upcoming presidency of the G20 group of economic powers to reform the global financial system, the French leader's other big priority fo ... read more







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