Spain and China sign eight deals worth $1.44bn

Spanish and Chinese enterprises have signed eight deals worth a total of US$1.44 billion, marking a four-day visit by Spanish Prime Minister Jose Luis Rodriguez Zapatero to China, state media reported. Contracts included a deal between Spain’s Santander (SAN.MCE) bank and China’s ZTE Corporation (000063.SH, 0763.HK) to finance the export of telecom equipment, and an agreement between Spanish turbine manufacturer Gamesa (GAM.MCE) to supply 150 wind turbines each to China Resources Power (0836.HK) and China Datang Corporation Renewable Power (1798.HK). Rating agency Moody’s (MCO.NYSE) has lowered Spain’s sovereign debt rating twice in recent months as the cost of restructuring the country’s financial system has inflated Spain’s budget deficit. Chinese Premier Wen Jiabao said Tuesday that China would continue to buy Spanish government debt. China currently holds 12% of Spain’s government debt, up from less than 4% previously, Zapatero said. With 49% of Spanish airports in need of privatization, China could also play a role in upcoming Spanish infrastructure projects, Zapatero added.