China, France discuss G20

FRANCE: Chinese President Hu Jintao was schduled to arrive in France yesterday on a two-nation trip to Europe to defuse trade tensions and to discuss French President Nicolas Sarkozy’s ambitious agenda for his G20 Presidency. Hu’s three-day state visit to France, after which he travels to Portugal, comes at a time when EU leaders have closed ranks with Washington in urging China to appreciate its yuan currency more quickly, unsettling relations between Beijing and Brussels.

China hopes this week’s visit, accompanied by a slew of contracts with Chinese firms, can ease those tensions ahead of a G20 leaders summit in South Korea next week which will focus on global economic imbalances.

In turn, Sarkozy’s Government, which takes up the G20 baton after the Seoul summit, wants to build common ground for its ambitious agenda of reforming the global monetary system, while avoiding alienating China by harping on about the yuan.

“We do not appreciate at all the pressure being exerted on China, as if the yuan’s exchange rate was a magical solution to all problems,” China’s deputy Foreign Minister Fu Ying told Le Figaro newspaper ahead of the visit.

“France’s presidency must have the patience to listen to everyone, especially on the reform of the global financial system,” she said. The visit caps a steady rehabilitation of Sino-French ties, which soured in 2008 when Sarkozy met the exiled Dalai Lama and slammed China’s record in Tibet, prompting Chinese citizens to call for a boycott of French goods and companies. France has since carefully avoided antagonising Beijing — scarcely reacting to last month’s award of the Nobel Peace Prize to Chinese dissident Liu Xiaobo.

Paris has said its G20 agenda, which includes a discussion of how to diversify currency reserves and stabilise commodity markets, depends on avoiding conflict with Beijing.

“The government, the President of Republic consider that it is above all by cooperation and dialogue that we will advance, and we can contribute to making China progress,” government spokesman Luc Chatel said on Wednesday.

Sarkozy and Hu, who arrives on Thursday afternoon, will preside over the signing of billions of euros in contracts between French and Chinese firms before a formal state dinner.

European aircraft maker Airbus is expected to land a major order for passenger planes. French newspaper Les Echos reported this could include some 10 A350s, 20 A330s and a significant number of A320s, but a source close to the negotiations said talks were ongoing.

French officials said oil major Total and insurer Axa were among the firms that would seal big deals. Nuclear reactor maker Areva declined to comment on reports it would ink a $3 billion uranium supply contract. On Friday, Hu will travel to the Mediterranean port of Nice, where afternoon talks are expected to centre on foreign affairs. Paris, Reuters