CHINA: French President Sarkozy meets Chinese President Hu in Beijing to sign contracts worth 20 billion U.S. Dollars

French President Nicolas Sarkozy meets with President Hu Jintao in Beijing during a three-day state visit to China. The two countries are expected to sign deals worth 20 billion U.S. dollars in fields such as nuclear energy and aerospace technology. Chinese President Hu Jintao welcomed French President Nicolas Sarkozy to Beijing's Great Hall of the People on Monday (November 26) during the second day of his official visit. Sarkozy landed at Beijing's International Airport on Sunday (November 25) after visiting China's former imperial capital of Xi'an, raising the curtain on his first visit to China since taking office in May. Sarkozy met with Hu on Monday morning. Talks between the two ranged from China's yuan currency, which Europe and the United States believe is undervalued, to its burgeoning trade surplus and the growing international tensions over Iran. Although Sarkozy's visit is overshadowed by trade disputes, it is expected that the two leaders will sign contracts worth up to 20 billion U.S. Dollars. Despite vocal criticism from Sarkozy on Beijing's reluctance to free its currency to ease economic imbalances, or to back Western calls for sanctions against Iran over its nuclear work, the trip is seen likely to include major deals for French firms. China is due to order two modern EPR nuclear power reactors from France's Areva after handing an earlier strategic deal for reactors to U.S. rival Westinghouse. And talks were under way to try to match an order for 150 Airbus jets sold during a farewell state visit to China by Sarkozy's predecessor, Jacques Chirac, in October last year. Sarkozy's trip comes days before high-level talks between China and European Union monetary officials and a China-EU summit on Wednesday (November 28) in Beijing. The European Union is worried over China's growing trade surplus, which it blames on an artificially weak yuan. Sarkozy delivered a message on Sunday that with China's economic power and growing international clout came responsibilities. He urged China to let the yuan rise before currency imbalances become so great that the world cannot cope with them. On Tuesday (November 27) President Sarkozy will deliver a speech at China's prestigious Tsinghua University and tour around venues for next year's Beijing Olympics, before heading to China's financial hub Shanghai in the afternoon.

ITN Source | November 26, 2007

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