China offers to support Portugal but no debt pledge
LISBON ? Chinese President Hu Jintao wrapped up a visit to Portugal Sunday with pledges to support its battered economy, but he did not commit to purchasing Portuguese debt as was widely anticipated.
Hu and Portuguese Prime Minister Jose Socrates inked a series of trade deals after holding talks, but there was no announcement of Beijing's willingness to buy up Portuguese debt, as it did last month for Greece.
"We are ready to support through concrete measures Portugal's efforts to reduce the impact of the international crisis," Hu said during a joint news conference.
Hu also repeated a pledge made on Saturday to see a doubling of bilateral trade by 2015.
Portuguese lenders Millennium BCP and BPI signed deals with Bank of China, one of China's "Big Four" national banks, to identify investment opportunities in the world's second-largest economy, the Portuguese government said in a statement.
Discussions were also ongoing over China taking a stake in Millenium BCP, the country's largest lender which has a strong presence in Angola, one of China's chief oil suppliers.
On several occasions during the two-day visit, Hu said China was looking to tap Portuguese knowledge to develop its presence in Lusophone markets, particularly Brazil and Angola.
Energy firm EDP signed a deal with China Power International (CPI) with a focus on renewable energy and cooperation in Europe, Africa and Brazil, the statement said.
The deal also paved the way for CPI to take a stake in EDP, the company's president Antonio Mexia said on the sidelines of the signing ceremony.
The Portuguese government is keen to reduce its 25 percent holding as it seeks to reduce national debt.
Negotiations were also ongoing over Chinese investment in the deepwater port of Sines, south of the capital, Portuguese media reported.
The two countries announced the signing of further agreements in tourism, telecommunications and education.
Neither side released specific investment figures for the deals, and the majority represented promises and declarations of intent, rather than firm contracts.
"These agreements represent a bet on the economic relations of the two countries," Socrates said.
Portuguese debt has been buffeted on international markets despite the parliament approving swingeing budget cuts of five billion euros (seven billion dollars) last week.
The yield -- the rate of return for investors -- on the benchmark Portuguese 10-year bonds jumped to a record 6.439 percent on Thursday.
Portugal ranks 77th on the list of China's suppliers, with goods worth 222 million euros (310 million dollars) exported last year, and imports worth 1.1 billion euros.
Hu arrived here Saturday with his wife Liu Yongqing, members of the Chinese government and around 50 business leaders.
Liu on Sunday visited Sao Jorge castle, which dominates the centre of Lisbon, as well as the Belem Tower, the starting point for the great voyages by 15th and 16th century Portuguese navigators.
Hu flew in direct from his visit to France, where Chinese officials had signed more than 20 billion dollars in contracts with French firms.
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