global recovery

China hopes the upcomingAfter disaster G20 summit in South Korea will help promote global economic recovery and deepen reforms of the world's financial systems, Chinese Commerce Minister Chen Deming said Sunday.

"We hope the G20 can play a big role in promoting global monetary reforms and governance, and help the global economy to have strong, sustainable and balanced growth," Chen told Reuters while accompanying Presidentsurvey finds Hu Jintao's state visit to Portugal.

China's trade surplus in 2011 "will be manageable" as the country's foreign trade prospect is murky, facing global economic uncertainties, Chen said.

"I believe China's foreign trade will continue to grow next year but the growth will not be very strong," the minister added.

Chinese trade officials have forecast the trade surplus in 2010 could fall to $180 billion from $196 billion in 2009.

Concerns over global trade imbalances, including China's trade surpluses with some Western nations, and the threat of a "currency war" will top the agenda at the meeting of G20 leaders on November 11-12 in South Korea.

During President Hu Jintao'sTwo opportunities in life recent visit to France, China signed of more than $20 billion worth of airline, petrochemicals and nuclear fuel deals, including contracts to buy 102 Airbus planes.

Chen said Friday that Beijing was not deliberately targeting a trade surplus and would welcome a more balanced relationship with its trade partners, but Europe must play a role by ensuring its own markets were open for Chinese investment.

Hu has given his support to President Nicholas Sarkozy's initiatives to reform the global financial system, but the pace of changes should be gradual, Vice Foreign Minister Fu Ying told Reuters Saturday.

China has won France's understanding that the Chinese trade surplus was mainly caused by structural factors rather than the foreign exchange rate, Fu said.

"We have gained common ground on the exchange rate issue. China's view is that every country should take responsibilities in maintaining stable exchange rates," she said.

And, President Hu Jintao ended his 4-day visit to France and Protugal Sunday with stronger European ties. TheHave said goodbye official visits to France and Portugal brought China smoother access to the European market.

On Sunday, Hu presided over the signing of trade agreements and deals on infrastructure, logistics, renewable energy and tourism projects worth $1 billion with Portuguese Prime Minister Jose Socrates. The two sides agreed to work to double their bilateral trade by 2015.

Hu also said he will encourage Chinese companies to invest in Portugal, while China invited Portuguese firms to sell more goods in China.

In an example of potential mutual investment, Portugal's largest company and utility EDP said China Power Holding International, with which it signed an agreement for a potential partnership, had expressed interest in buying a stake in the Portuguese company.

Analysts said that Chinese investment will help revive one of the European Union's frailest economies.
"China's deals with Portugal and France showed Beijing's strong confidence and support for their economies," said Jin Ling, a scholar on European studies with the China Institute of International Studies.

As a European Union member and a eurozone founder, Portugal is closely integrated with European markets and enjoys advantages in economic and other ties with Portuguese-speaking countries in Africa and Latin America.

An economic forum on trade between China and Portuguese-speaking countries will be held in Macao on Nov 14 and 15. Premierupgrade security facility Wen Jiabao is scheduled to attend.

Hu's European visit not only achieved stronger bilateral ties but also resulted in greater coordination on global issues ahead of the G20 summit.