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Showing posts with label China's Economy. Show all posts
Showing posts with label China's Economy. Show all posts

Friday, November 5, 2010

France To Sell China Nuclear Material, Technology

Angela Doland
Associated Press

PARIS — France announced euro16 billion ($22.8 billion) in deals Thursday to sell uranium, technology and more than 100 Airbus planes to China, and the two countries also agreed to a sweeping strategic partnership on nuclear power.

Chinese President Hu Jintao's three-day state visit to France opened with a red carpet welcome, Chinese flags flying on the streets of Paris and dinner at the Elysee Palace – as well as a flurry of deals that made clear how much the countries' ties have improved.

It was a turnaround from the tense relations of two years ago, when French President Nicolas Sarkozy threatened to boycott the opening ceremony of the Beijing Olympics out of anger about China's treatment of Tibet.


That stance brought fears that France could lose big business in China, and Sarkozy's tone has changed. To the distress of human rights groups, Sarkozy's advisers say he is avoiding confrontation and going for convergence.

Sarkozy said the two countries decided on "strategic cooperation without limits" on nuclear energy, from constructing plants to recycling fuel.

The deal expands on 30 years of nuclear cooperation between China and France, which gets about three-quarters of its electricity from nuclear power and has deep knowledge of the field.

Sarkozy and Hu looked on as business leaders signed contract after contract. The Airbus deal alone – which will see airlines including Air China, China Eastern and China Southern buy 102 of the European consortium's A320, A330 and A350 models – is worth around $14 billion.

France's Areva nuclear engineering firm said it would sell China Guangdong Nuclear Power Corp. 20,000 tons of uranium over a decade. The contract is worth around $3.5 billion dollars.

Cooperation is cultural as well: Paris' Louvre Museum and Beijing's Forbidden City agreed to work together on temporary exhibits and to share conservation and restoration techniques.

References to human rights have been subtle during the visit.

In a toast at a dinner table covered with gold ornaments and Champagne glasses, Sarkozy praised China's staggering recent development, adding: "The world is confidently waiting for (China) to take on all the responsibilities that accompany its rediscovered power."

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Friday, October 22, 2010

G20 struggles to find common ground on currency war, triggers US push for trade caps

Finance ministers from the Group of 20 nations struggled to agree on how to prevent a currency war on Friday, with the United States switching tack to focus on a way to rebalance global trade.


G20 Finance Meeting - EPA Photo
Malcom Moore
Telegraph

With China resolutely refusing to allow the yuan to rise more quickly, the US shifted the debate on the first day of the G20 summit to address trade imbalances, the root issue behind exchange rate clashes.

Timothy Geithner, the US Treasury secretary, told G20 members they should commit to specific trade caps, allowing surpluses and deficits on their current account, the broadest measure of trade in goods and services, to be no more than 4pc of gross domestic product.


China's current account surplus was 5.9pc in 2009, having almost halved from its peak of 10.6pc in 2007. The US, by contrast, had a current account deficit of 3pc last year.  In a letter to the G20, Mr Geithner called for a "co-operative effort" on the issue, but said there would have to be "some exceptions" for countries that imported large quantities of raw materials.

The US plan, a way of side-stepping a direct spat over currencies, was backed by Korea, Australia and Canada, but immediately opposed by large exporters such as Japan and Germany.

Rainer Bruederle, the German finance minister, rejected a "command economy" approach, while Yoshihiko Noda of Japan said "setting numerical targets would be unrealistic".

India also said the trade caps would be hard to work out, while Russia said there would be no numerical limits set in the summit's final statement.

Mr Geithner also called for G20 countries to refrain from "either weakening their currency or preventing the appreciation of an undervalued currency". Mr Geithner, who also called for the IMF to monitor the G20's commitments, added: "G20 advanced countries will work to ensure against excessive volatility and disorderly movement in exchange rates."

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