France, China urge balanced trade, monetary reform

France told China on Friday that balanced trade and co-operation was the best way to shield the world from future crises and the menace of protectionism, as the two nations' leaders discussed France's G20 objectives. President Nicolas Sarkozy told reporters there had been a "real convergence" of French and Chinese views on redrawing the international monetary system, and said Beijing had agreed to organise a seminar of experts in 2011 on such a reform.
Sarkozy also said he had discussed human rights with visiting Chinese President Hu Jintao, and hoped France could encourage progress in that area through "gentle" dialogue with Beijing. "There is a real convergence of views between China and France on the objectives to achieve," Sarkozy said, referring to his ambitious goals for when France takes over the presidency of the Group of 20 leading economies later this month.
On the sensitive issue of human rights, Sarkozy said: "Hu Jintao is somebody with whom one can talk. There are many differences between the Chinese and the French but we covered all subjects." "There is no taboo, notably on the issue of human rights," added Sarkozy, who spent the afternoon with Hu in the French Riviera resort of Nice.
Before Hu flew to Nice, French Economy Minister Christine Lagarde told Chinese officials and business leaders that Paris wanted much more balanced trade relations with Beijing. Concerns over global trade imbalances, largely China's huge surpluses with Western nations, and the threat of "currency wars" will top the agenda at next week's G20 leaders' summit in Seoul, after which France will assume the group's presidency with plans to push global financial reform. "The strength of our trade is the best defence against the real risks from the financial, economic and social crises which have struck all economies, including France of course and China, of which protectionism is the most ugly threat," Lagarde said.
Sarkozy, who also met Hu in Paris on Thursday, is using the visit to build relations and gauge China's position on his G20 agenda. French officials have said Beijing's backing will be crucial for its plans to diversify global currency reserves and stabilise commodity markets.
France has not mentioned China's yuan currency, whose weakness has upset Washington and Brussels, adopting a conciliatory approach it hopes will win over Beijing. But Lagarde, who said on Thursday that US monetary easing this week had reinforced the need for a shake up of the global financial system, raised French concerns over China's handling of intellectual property rights and the openness of its markets.