Accompanying Chirac is a 30-member French business delegation keen to boost economic and trade ties in key fields such as aeronautics, nuclear energy, railway transport, telecommunications and financial services.

In a meeting with French business leaders shortly after his arrival, Chirac called on them to act like "conquerors" as they engage China's booming market, and he made a strong push for nuclear company Areva, which is competing for a contract to build next-generation reactors.

"We must fight in this affair," Chirac said of Areva, which faces US competition for the contract.

Soon after the delegation's arrival, the CEO of France's Alstom SA announced a deal to supply 500 freight locomotives to China, in a venture with Chinese counterpart Dantong.

Patrick Kron confirmed the deal in Beijing, saying it would be worth more than US$1.28 billion.

French economic ties to China have nearly doubled since 2000 but are still relatively slim.

France now holds only a 1.4 percent share in the expanding Chinese market while Germany has a 4 percent share, according to French government figures.

Chirac is scheduled to met President Hu Jintao and Premier Wen Jiabao.

Mei Xinyu, a researcher with the Chinese Academy of International Trade and Economic Cooperation, said: "I believe China-EU relations will be another key topic on the agenda."

Yesterday, the European Union, in which France actively promotes China-friendly policies, issued a policy paper promising to continue to seek "engagement" and "partnership" with China.

Besides Beijing, Chirac will also visit ancient China's capital Xi'an in Shaanxi Province, and Wuhan, capital city of central China's Hubei Province, where he will attend a ceremony tomorrow to mark the start of construction of a second PSA Peugeot-Citroen factory.

Chirac is also expected to give a speech in the prestigious Peking University during his stay in Beijing.

The four-day visit to China is Chirac's second in two years and likely the last of his mandate, which ends next year. He is unlikely to seek a third term.