Auto deals likely during Wen's trip

Nation may press for further relaxation of export controls

China is expected to reiterate its support for the stability of the European economy when Premier Wen Jiabao makes an eight-day trip that will take him to Iceland, Germany, Sweden and Poland, starting on April 20.

Wen may urge the leaders to further open up their markets to China, relax export controls and expand bilateral investment, says Ding Yifan, deputy head of the Institute of World Development at the State Council's Development Research Center.

Apart from meeting his counterparts and state leaders, Wen will also attend a series of events including: the world's largest investment fair, the Hannover Messe in Germany; the Stockholm+40 conference, a key forum for sustainable development; and an economic and trade forum between China and Central and Eastern European countries, the second one, in Warsaw.

Volkswagen, the first foreign auto maker to enter the Chinese market, may sign a declaration detailing plans to build a plant in China's northwestern Xinjiang Uygur autonomous region during Wen's visit to Germany, his sixth.

The proposed factory, a subsidiary of Shanghai VW, would be in Xinjiang's capital city of Urumqi and become operational by next year, says Li Ge, head of the Urumqi Economic and Technological Development Zone's investment and promotion center.

VW's Chief Executive Officer, Martin Winterkor, visited Xinjiang this month. The Xinjiang Daily said that when Winterkor and the autonomous region's Party chief, Zhang Chunxian, met on April 11, Zhang spoke of the many advantages of doing business there.

The moves can be seen as part of a much broader effort by China to consolidate its ties with Europe, says Zhu Wenhui, a commentator with Phoenix TV of Hong Kong.

Xinhua News Agency quoted Wen as telling German Chancellor Angela Merkel in a telephone conversation on April 18 that China had always had confidence in the European economy and the stability of the single currency.

"The economic and financial stability of Europe is of great importance to global economic stability and sustained recovery," he was quoted as saying.

A series of business deals will be signed during Wen's visits to Iceland, Sweden and Poland as well, according to sources who declined to be identified.

China, an ad hoc observer at the eight-member Arctic Council now chaired by Sweden, will also seek to enhance cooperation in the region. Beijing applauds Swedish support for it to become a permanent member, Song Tao, China's deputy foreign minister, said on April 16.

The country will sign an agreement on energy conservation and environmental protection with Sweden during Wen's visit, he says.

China has stressed the prospects for cooperation in case Arctic shipping routes open some day.

Contact the writer at huyinan@chinadaily.com.cn