Boost to trade with Portuguese-speaking countries unveiled

China yesterday unveiled a plan to inject cash to finance development in resource-rich Portuguese-speaking countries, in a package of measures announced in Macau yesterday.

The move aims to expand Beijing's presence in the markets, which have a total population of 220 million.

Premier Wen Jiabao unveiled the plan to push deeper into the markets of seven Portuguese-speaking, or lusophone, countries in front of leaders of the seven: Brazil, Portugal, Angola, Mozambique, Guinea-Bissau, Cape Verde and East Timor. Sao Tome and Principe, which has diplomatic ties with Taiwan, is the only Portuguese-speaking state which did not attend the Third Ministerial Conference on the Forum for Economic and Trade Co-operation between China and Portuguese-speaking Countries.

It is the first time a Chinese state leader has attended the conference, first held in 2003 and again in 2006.

Kwan Fung, head of the University of Macau's economics department, said of the push: 'It highlights that Beijing wants to broaden the basis of its international trade, adjusting its reliance on trade with the developed nations, after the financial crisis.

'Beijing is also eyeing the natural resources in these countries. It is easier for them to expand in these countries than in the developed nations, which have more conflict with China.'