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China confirms interest in Europe, with new investments in Hungary

China confirms interest in Europe, with new investments in Hungary

AFP | 25/06/2011 - 15:35

The Chinese Prime Minister Wen Jiabao announced Saturday in Budapest Hungarian bond purchase and the assignment of a loan of one billion euros to Hungary in the context of the crisis of the euro and the public finances of several European countries.
Wen confirmed China's interest and invest in all continents, after years of operations and strong growth in Africa, America (including U.S.) and Australia.
In his previous tour, nine months ago, the head of the Chinese government visited Greece, Italy and Turkey. This time, after Hungary, will travel to Germany and Britain.
But Wen refrained from specifying the amount of obligations of the Hungarian state that China is willing to take.
It will be "a good amount," he said simply in a joint press conference with the head of the Hungarian government, Viktor Orban.
In addition, China will give Hungary a loan of one billion euros through the National Development Bank of China, to further joint projects, he said.
These ads illustrate the growing interest of China to Europe, after the investment already made in Greece and Poland.
Orban welcomed the purchase of debt bonds, saying it was a "historical support" through which Hungary could see their funding "medium term" was "locked", but stressed that the Central European country may anyway be financed in markets.
He added that Hungary and China also concluded "a new agreement is of great importance" to the development of industrial and infrastructure projects and said that Beijing planned to establish in the Central European country logistics platform. "
Among the joint projects, highlights the cooperation between the Hungarian chemical company BorsodChem and Bank of China and a strategic view of the facility in Hungary for a distribution center computer of the Chinese group Huawei.
In addition, China wants to build in Szolnok, 100 km east of Budapest, a citric acid plant with a production capacity of 60,000 tonnes per year, and the Chinese group plans to install a Canyi lamp manufacturing plant in a location yet to be determined.
The two countries also signed agreements more generally, in the field of transport, investment promotion and the creation of several cultural centers.
Wen Jiabao is accompanied by a delegation of 300 businessmen and 110 Chinese journalists.
This trip takes place in a framework of financial crisis in several countries in the euro zone.
The leaders of the currency area in Brussels on Thursday agreed to grant further aid to Greece in July to avoid a bankruptcy which may cause a financial catastrophe on a planetary scale.
"The Chinese government has adopted a series of positive measures designed to sustain the European countries affected by the current crisis, increasing its portfolio of bonds and stimulating European cooperation both its economic and investment in Europe", declared two days before spokesman China's diplomacy, Hong Lei.
"China will continue its efforts to help affected countries to achieve stable economic growth," he added.