Headlines

The NewsFuror

Monday, November 26, 2007

Sarkozy secures deals with China

Nicolas Sarkozy and Hu Jintao
Mr Sarkozy urged Mr Hu to strengthen China's currency
French industrialists visiting China with President Nicolas Sarkozy say they have finalised trade deals worth almost 20bn euros ($30bn; £14.5bn).

They say China has agreed to buy Airbus planes and other business to the value of 8bn euros.

And a French company, Areva, said it had signed a contract for the delivery of two nuclear reactors.

The announcements came as Mr Sarkozy held a second meeting with his Chinese counterpart Hu Jintao.

"The total amount of these contracts has never been matched before," he told the Chinese president as they met in Beijing's Great Hall of the People.

The reactors will be built in six years' time in the south of the country.

Areva and its Chinese partner also agreed to set up a company that will operate the two pressurised water reactors until 2026.

The BBC's James Reynolds in Beijing says China is increasingly looking to nuclear energy to meet its growing demand for power and France is keen to make sure that it is involved in this process.

Iran issue

Following the signing of these deals, President Sarkozy will carry on with his official visit.

He is set to hold further talks in Beijing and will then travel to Shanghai to meet Chinese business leaders.

The visit is also expected to focus on international issues including Iran, with the French president likely to urge Mr Hu to take a harder line over Tehran's nuclear programme.

It is Mr Sarkozy's first trip to Asia since his election in May.

The French president has warned that it would be unacceptable if Tehran acquired nuclear weapons.

China - a permanent member of the UN Security Council, like France - has been reluctant to pursue further sanctions.

However, the BBC's James Reynolds in Beijing says China will be keen to play down any major differences with France.

It will want to reward Mr Sarkozy for being a rare Western leader who has not recently played host to the Dalai Lama, our correspondent adds.

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