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Chirac's China visit nets $5b in business
(Agencies)
Updated: 2004-10-12 15:37

French President Jacques Chirac visited ventures by his countrymen in the business hub of Shanghai Tuesday as he wrapped up a China trade mission that yielded big contracts of US$5 billion.

The new contracts between French companies and Chinese partners are worth about US$5 billion, and include deals for trains from France's Alstom SA, water and waste treatment projects, gas stations and the sale of six new passenger jets by Airbus.

On Tuesday morning, Chirac visited the offices of French computer game maker Ubisoft and Shanghai's overhead light rail line, which uses Alstom trains and technology. He was due to fly to Hong Kong later Tuesday, where he was scheduled to meet Chief Executive Tung Chee-hwa.

French companies are trying to close the gap with European rivals Britain and Germany in exploiting China's vast markets, although its investments this year are set to lag even further behind other European countries.

Seeking to give French business a leg-up, Chirac went out of his way to charm his hosts, quoting Chinese poetry and echoing Beijing's repeated calls for "mutual respect" in foreign relations.

In a speech at a Shanghai university on Monday, he pushed for stronger economic and political ties with China, saying the countries had an obligation to balance U.S. global influence.

The French head of state also called for an end to the European Union's arms embargo against China describing it as "a measure motivated purely and simply by hostility."

In Luxembourg on Monday, EU foreign ministers failed to reach agreement on lifting the bloc's 15-year-old arms embargo despite the French pressure, officials said.

Dutch Foreign Minister Ben Bot, whose country holds the EU presidency, said more time was needed to find a consensus.

"It's clear we need more time to consider the situation," Bot told reporters.

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