InfoAnda - Portugal hopes to reap benefits from Hu's visit

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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Singapore Asia Pacific World Portugal hopes to reap benefits from Hu's visit AFP - Sunday, November 7 Send IM Story Print Portugal hopes to reap benefits from Hu's visit Slideshow: Full Photo Coverage: Business & Economy LISBON (AFP) - – Chinese President Hu Jintao Saturday began a two-day visit to economically fragile Portugal, which hopes to reap the benefit of Beijing's largesse in trade deals and alleviate market pressure on its debt. Hu, accompanied by his wife Liu Yonqing, members of the Chinese government and around 50 business leaders, arrived at a military air base in the Portuguese capital from France, which secured more than 20 billion dollars in contracts for French firms during Hu's state visit there. The Chinese leader's first visit to Portugal started with laying flowers at the tomb of the 16th century poet Luis de Camoes, whose epic poem "Lusiades" was partly composed in Macau, now Chinese but then a Portuguese colony. Outside the Gothic Jeronimos monastery in the Lisbon suburb of Belem a thousand people waved red balloons and Chinese and Portuguese flags to welcome Hu. A couple of hundred metres away, out of the view of the Chinese president, a demonstration organised by Amnesty International gathered around 20 people, according to local media. Hu was due to go on to the nearby presidential palace for a formal welcome from President Anibal Cavaco Silva. Talks with parliament speaker Jaime Gama and party leaders were also on the agenda. Hu is to meet Prime Minister Jose Socrates on Sunday, after which various accords and contracts will be signed, including an economic cooperation accord. The contracts are expected to include deals in telecommunications and renewable energies in particular, as well as banking and food. Beyond the dozen or so contracts due to be announced on Sunday, analysts expect Beijing will also announce, as it did last month for Greece, its willingness to buy up Portuguese debt, which has been buffeted on the bond markets. In the run-up to Hu's visit the two sides have showered each other with compliments, with the Chinese president hailing their long friendship and fruitful relations in an interview with Portugal's Lusa news agency. Cavaco Silva for his part told China's Xinhua agency that Portugal is as "an ideal economic partner" for China. As a European Union member and a eurozone founder, Portugal has an open, modern and stable economy, whose businesses are closely integrated with European markets and enjoy natural advantages in forging economic and other ties with the Portuguese-speaking countries in Africa and Latin America, he added. The head of Portugal's foreign trade agency, Basilio Horta, meanwhile told China Radio International that Beijing could benefit from a gateway to Europe and to other Portuguese-speaking countries. China has already developed ties over the years with such countries, notably Brazil and Angola, its leading source of oil. The volume of trade with all lusophone countries has boomed according to China, exceeding 58.5 billion dollars between January and August this year, though its exchanges with Portugal itself are still very low. Portugal ranks 77th on the list of China's suppliers, with goods worth 222 million euros (310 million dollars) exported last year, and 65th on the list of customers, with imports worth 1.1 billion euros. Originally planned for July 2009, the 10th anniversary of Macau's handover to China, the Chinese president's trip to Portugal was put off due to ethnic unrest in the Xinjiang region. Since then a number of senior Portuguese officials have visited China and Socrates will take part in an economic forum in Macau on November 14-15 at which he will meet his Chinese counterpart Wen Jiabao. 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