China inks deals worth $7.5 bn with Spain

China has signed over a dozen business agreements worth $7.5 billion with Spain during the three-day visit of nation's vice-premier Li Keqiang to Madrid, as part of his European tour that includes Germany as well as the UK in the itinerary.

Spain, the euro zone nation that is struggling to prop up its economy from a looming sovereign debt crisis, is eager to welcome the cash-rich Asian giant with a foreign currency chest of $2.6 trillion, as a potential rescuer.

During his visit, Li held talks with Spanish prime minister Jose Luis Rodriguez Zapatero, King Juan Carlos, foreign minister Trinidad Jimenez, and other officials.

Li said China-Spain ties have stood the test of time since the two countries forged diplomatic relations decades ago.

The agreements and contracts signed cover diverse sectors including energy, banking, transport, telecommunication, and agriculture.

The key deal is the ratification of the previously announced $7.1-billion acquisition of certain Brazilian assets of Spain's oil major Repsol YPF SA by China's largest refiner Sinopec (See: Sinopec acquires 40 per cent in Repsol's Brazilian assets for $7.1-bn)