UPDATE 1-China says Hu open to discussing French G20 proposals

* Says China open to other nation’s views on G20
cooperation

* To discuss aircraft, nuclear projects with France

* Confident measures to aid Portugal will restore economy

(Adds detail)

By Chris Buckley

BEIJING, Oct 28 (BestGrowthStock) – Chinese President Hu Jintao is
open to discussing President Nicolas Sarkozy’s broad proposals
for G20-led global financial reforms during his upcoming visit
to France, a senior Chinese diplomat said on Thursday.

France takes the chair of the G20 group of leading
economies from mid-November and has made reforming the
international monetary system a focus for its year-long
presidency.

China’s currency frictions with other big economies put it
at the heart of those issues, and Hu has timed his visit to
France from Thursday ahead of Sarkozy taking the G20 reins.

Chinese Vice Foreign Minister Fu Ying would not discuss the
specifics of what the two leaders may discuss, but she
indicated that Hu was open to hearing Sarkozy’s proposals and
wanted views aired at a G20 summit in Seoul in November.

“President Sarkozy and the French side, as the next chair
country of the G20, have raised many proposals, and China takes
these very seriously,” she told a news conference in Beijing.

“We feel that for France as the chair country to have this
active attitude and to propose these leading edge proposals for
cooperation merits being taken seriously,” she said.

“As well, I think that during the Seoul meeting China will
hear the views of other countries’ views of France’s proposals
and views.”

Hu will also discuss expanding aircraft and nuclear project
cooperation during his visit to France, Fu said.

French aircraft maker Airbus was in talks to sell at least
150 aircraft to China for about $16 billion, a deal that could
be sealed during Hu’s visit, according to French media reports
[ID:nLDE68Co6U].

On Portuguese debt, Fu said China has consistently invested
its foreign exchange in European countries, adding “we are
confident that the measures being undertaken by the Portuguese
government will help in restoring the economy and finances to
normal”.

Sarkozy, whose poll ratings are skidding at near record
lows, has said that under France’s stewardship the G20 will
pursue an ambitious agenda, including combating volatility in
commodities markets and improving global economic governance.
[ID:nLDE69Q2C1]

In preparation for its presidency, Paris has been
canvassing the opinion of G20 partners in recent months on
reform of the international monetary system, French officials
have said.

One French official has said a key area of discussion was
how to encourage greater use of China’s yuan as a reserve
currency in the future, including talks on a possible timetable
for its inclusion in the basket of currencies which underpin
the IMF’s Special Drawing Rights (SDRs).

The Chinese Vice Foreign Minister Fu did not say directly
whether Hu would take up that issue with Sarkozy, and she
indicated the discussions would unfold over the next year.

“It’s good for these proposals to raised early, so that
there’s a year for everyone to gradually arrive at consensus
and gradually to implement more viable proposals,” she said.

Euro area policymakers have joined the United States and
other economies in urging China to allow faster appreciation of
its yuan currency.

Chinese officials have resisted making rapid adjustments
and say the appreciation would not cure trade imbalances.
[ID:nLDE6940IX]

(Additional reporting by Sabrina Mao; Editing by Ken Wills
and Sugita Katyal)

UPDATE 1-China says Hu open to discussing French G20 proposals