Swedish companies ink deals with China, while Xinjiang "no threat"

Jul 8, 2009, 13:24 GMT

Stockholm - Leading Swedish companies including telecoms group Ericsson Wednesday inked new deals with Chinese counterparts in connection with a visit of a Chinese trade delegation headed by Chinese Vice Commerce Minister Gao Hucheng.

Ericsson signed framework deals worth 1.7 billion dollars for mobile communication equipment and related services Chinese telecom operators. The deal with China Mobile was worth 1 billion dollars while the deal with China Unicom totalled 700 million dollars. The two operators have over 620 million mobile subscribers in China.

Heavy vehicle maker Volvo also signed a deal worth 100 million dollars, Gunnar Wieslander, Swedish state secretary for trade, said.

The recent unrest in the far western region of Xinjiang involving Uighurs and Han Chinese however posed no threat to companies wanting to do business, Gao said after a signing ceremony.

The events will not affect business relationships between China and Sweden, Gao told the German Press Agency dpa.

'With regard to the unrest in Xinjiang, actually it is already kept under control,' Gao said.

He said the unrest would 'not affect China's economic development of China' the stability of Xinjiang, or relations with Sweden.

Wieslander described the meeting which attracted some 50 Swedish companies engaged in telecoms, IT, mining, metal and other sectors as a good opportunity for smaller companies to make business deals and meet with interested parties in China.

Sweden and China were both interested in promoting free trade, Wieslander said, adding that talks were ongoing with Beijing also about corporate social responsibility.

'They are very interested in the Swedish model, and have come to us to ask for advice,' Wieslander told dpa, citing that Sweden had managed to combine growth policies with social responsibility.

Sweden is the current holder of the rotating presidency of the European Union and late Tuesday issued a statement voicing 'strong concern over the unrest in Xinjiang' and urging 'restraint on all sides.'