Vice-President garners valuable political goodwill, bolsters trade ties during visit to Italy

Aside the flurry of multi-billion-euro contracts inked during his recent visit to Italy, Chinese Vice-President Xi Jinping has also garnered valuable political goodwill that will strengthen China's position in global affairs.

"We see China as a respected global dialogue partner on international issues," Italian Foreign Minister Franco Frattini said during his meeting with Xi. Frattini stressed that Italy's strategy on China is different from that of other European nations.

But for Xi and China, Frattini's remarks are significant as it could be a precursor to the European Union finally recognizing China's key role in global political and strategic affairs.

At the same time, Xi also indicated China's keenness to be engaged in global issues and direct more efforts to improve global governance.

His remarks came in the midst of an array of European leaders like Russian President Dmitry Medvedev, King Juan Carlos of Spain, US Vice-President Joe Biden, Israeli President Shimon Peres and Palestinian President Mahmoud Abbas all of whom had gathered to commemorate 150th anniversary of Italy's unification.

Cesare Romiti, president of the Italy-China Foundation, says that Xi's visit indicates the importance of Italy as a strategic partner for China.

Giancarlo Lanna, president of Simest, an institution for the promotion of Italian enterprises abroad, says that the visit represents a tangible sign of the closeness between Italy and China. "It also shows that the two countries' relations are based on solid friendship and real common interests," Lanna says.

In his remarks Xi indicated that the "Chinese people deeply understand the importance of unification and independence for a country."

Economic, trade ties

But what really caught the eye during Xi's Italian visit was the inking of deals worth $3.3 billion (2.25 billion euros) between the two nations.

Among the 16 agreements, 14 were signed by China Development Bank, China National Petroleum Corporation, Huawei, Guangzhou Auto and other Chinese companies with Italian companies, covering areas including telecommunications, medicine, finance, automobiles and new energy. The other two agreements were on scientific research cooperation and innovation.

Tao Jingwen, president of Huawei's West Europe Region, says that his company has signed contracts worth $1.3 billion with Telecom Italia and Linkem, accounting for more than one-third of the total value of all the deals. Under the deals, Huawei will provide a five-year broadband service to Italy and sell telecommunication equipment worth about $360 million, he says.

Bilateral trade volume between China and Italy is expected to reach $80 billion by 2015, almost double than the $45.1 billion mark in 2010. Currently, more than 2,500 Italian companies have invested in China.

During the visit, Xi expressed China's keenness to welcome more foreign investment and added that the nation would offer "equal treatment" to domestic and overseas investors even as it redoubles its efforts to boost domestic consumption and imports.

Xi also outlined China's plan to accelerate the transformation of its economic development and to improve the level and quality of the opportunities available for foreign investment.

China will encourage overseas capital to participate more in areas like modern agriculture, high-tech and new technologies, advanced manufacturing, energy-efficient and environmental friendly production, new energy and modern services, Xi says.

Overseas investments will also be encouraged in China's vast central and western regions and also in mergers and reorganization of Chinese enterprises through joint stock holding, he says.

At the same time China will also enhance enforcement of intellectual property rights laws to protect the legal interests of overseas-funded enterprises, Xi says.

"China will firmly adhere to the mutually beneficial and win-win strategy of opening up," he says.

Yang Zhihong, chief executive of PetroChina Goodpec, says his company has signed a $300 million contract to purchase natural-gas filling station equipment from Italian firm SAFE.

"We decided to purchase the equipment because the Italian company can offer us high-end technical assistance," Yang says.

While Italy is a leading exporter of high-tech products to China, some European countries and the US have been hesitant to follow suit.

"We sincerely hope that the EU can more actively and openly undertake high-tech cooperation and investment with China," says Xi, expressing his wish that both sides can jointly oppose trade and investment protectionism.