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Canada PM Trudeau to mount charm offensive in China: officials
By Michel COMTE
Ottawa (AFP) Aug 26, 2016


Poland first in Europe to issue Chinese 'Panda bonds': ministry
Warsaw (AFP) Aug 25, 2016 - Poland on Thursday said it became the first European country to issue government bonds on the Chinese market, opening the door to new sources of financing as Warsaw plans to run a record deficit next year.

The Polish finance ministry said it had issued three-year bonds worth three billion yuan (400 million euros, $451 million)and denominated in the Chinese currency, also revealing in a statement that earnings "were swapped into euros".

"After securing the necessary permission from Chinese regulators, we became the first European country to issue Polish bonds on the Chinese market," a Polish finance ministry statement said.

The move comes after the Polish populist-oriented rightwing Law and Justice (PiS) government said Monday it would raise spending next year to just under an EU-wide limit of 3.0 percent of GDP, while also cutting growth forecasts for central Europe's largest economy.

"Emitting bonds on the Chinese market was aimed above all at diversifying our investor base and acquiring financing to cover this year's loans," the finance ministry added.

The PiS won an October 2015 election on promises of generous social spending -- including a universal child benefit scheme -- raising concerns it could bloat Poland's moderate public debt.

The ministry pegged the 2017 deficit at 2.9 percent of GDP in a Monday statement, or 59.3 billion zloty (137 billion euro, $156 billion).

The figure totals around five billion zloty more in deficit spending over 2016, Poland's Puls Biznesu financial daily reported.

The ministry also dialled down its growth estimate for 2017 from 3.9 percent to 3.6 percent, with average annual inflation set to hit 1.3 percent. It also revised its growth forecast for this year to 3.4 percent, down from 3.6 percent.

The IMF said in July it expected spending to increase "the budget deficit to 2.8 percent of GDP in 2016 and to over 3 percent of GDP in 2017", compared to 2.6 percent in 2015, before a planned return to fiscal consolidation from 2018.

It also said growth would accelerate to 3.7 percent in 2017 from an estimated 3.5 this year, thanks to "strong private consumption supported by the new child benefit scheme, before moderating over the medium term".

Chinese President Xi Jinping visited Poland in June.

Canadian Prime Minister Justin Trudeau will tour the Great Wall, shoot hoops with retired basketball star Yao Ming and meet with women entrepreneurs when he travels to China next week to bolster trade and diplomatic ties, his office said Friday.

There will also be meetings with Chinese President Xi Jinping and senior government officials during the August 30 to September 6 trip, which includes stops in Beijing, Shanghai and Hong Kong.

Trudeau will travel as well to Hangzhou for a summit meeting of the Group of 20 economic powers on September 4 and 5.

But ordinary Chinese citizens can also expect to see the playful political leader pose for selfies with locals, and reach out to them through social media -- as he has done everywhere he has gone since being elected to Canada's highest office late last year.

"The prime minister has a WeChat and Weibo account and we will be using these during the trip," a senior government official said, referring to two popular social-media platforms in China.

But the trip, made at the invitation of Premier Li Keqiang, comes as a handful of trade irritants and other stresses weigh on the relationship.

These include Chinese plans to impose new rules on canola imports to protect against crop disease, potentially affecting Can$2 billion (US$1.5 billion) worth of annual Canadian oilseed sales to China.

Trade Minister Chrystia Freeland, who will be accompanying Trudeau, said this week that the bilateral relationship could not improve until the matter is resolved.

The detention of Canadian citizen Kevin Garratt in 2014 on espionage charges also looms over the visit. He had run a Christian-themed coffee shop near the North Korean border.

China, meanwhile, is seeking a lifting of restrictions on foreign ownership of Canadian oil-sands leases.

"What we need with China is to reset the relationship a little bit," Trudeau told reporters.

"The previous government went from hot to cold and didn't have the robust engagement to allow for covering of a broad range of topics in strong and meaningful ways," he said.

"We look forward to engaging with China on the economic files and allowing greater access to the growing Chinese middle-class market for Canadian products and goods and services. But also, we'll be engaging in a strong and robust way how China can improve human rights, governance and democracy issues, in a way that's consistent with its desire to improve its reputation on the world stage."

A senior government official underscored the importance of the visit.

"Canada's future prosperity is increasingly tied to China," the official told reporters. "To grow its economy... it's imperative that Canada renew its relationship with China."

Trudeau will also seek cooperation with China on climate change and other global issues, press for increased tourism from China, and urge Chinese business leaders to boost their investments in Canada.

He will meet privately with managers of the Chinese conglomerate Fosun, which purchased a minority stake in Montreal-based Cirque du Soleil last year.


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