China is on a charm offensive in Eastern Europe, an attempt to secure business ties in a region where the European Union and Russia are increasingly jostling for influence.
Chinese Prime Minister Li Keqiang, trailed by a cohort of 300 corporate executives, met the leaders of 16 countries in Bucharest, Romania, today.
Analysts say the Asian economic power is interested in energy and raw materials to fuel its economy and in cheap labour at a time when wages are rising at home. Coupled with a strengthening national currency, China's growing labour costs risk crimping its exports, its traditional economic strength.
"Our cooperation has political and economic significance. The onus is upon us to translate the blue print into reality," Li said after the meeting.
Closer ties would bring "massive investments and will lead to a growth in trade," Li said, adding China was interested in investing in infrastructure, renewable energy and agriculture.
The timing of Li's visit is significant, coming just two days before the EU is due to sign economic and political partnership deals with several countries in the region.
The 16 European countries at the summit all share a former Soviet communist past. But today, they are a varied group. Some, like Romania, Poland and Hungary, are part of the EU. Others, like Serbia, would like to join the EU but are still influenced by Russia, the region's long-time dominant power.
With Western Europe struggling with economic growth and Russia accused of bullying governments in the region, some of the countries have been looking farther away for commercial deals.
"Everyone is looking for investment and financing commitments from China," said Timothy Ash, an analyst from Standard Bank in London. "The Chinese want trade access and are particularly interested in the agricultural sectors in the region."
For China, establishing stronger relations now could provide it with a gateway to markets in the EU, the world's largest economic bloc.
"The world has changed and will no longer be as it was before the crisis," Hungarian Prime Minister Viktor Orban said at the summit. "China will have a decisive role in this new world."
Li reiterated China's offer of a USD 10 billion credit line for countries in Eastern Europe, a pledge first made last year in Poland and received with some scepticism by analysts, who say the real impact will be in trade and investment over the longer-term.
