President Xi to Visit Portugal: Lisbon expects more Chinese investment flow, wider market

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02:42

The final stop in President Xi's diplomatic tour is Portugal, he'll be there on Tuesday. China and Portugal established diplomatic relations in 1979, which led to strong investment and trade between the two countries. Portugal has now shown interest in China's Belt and Road initiative. Al Goodman reports from Lisbon.

Trying to keep a decades-long relationship right on track. Chinese President Xi Jinping visits Lisbon this week as China and Portugal prepare to mark 40 years of diplomatic ties. During that time, they've had to navigate some diplomatic curves. And their economic ties have sometimes developed at uneven speeds. Although in recent years, they've been picking up steam.

This former adviser to Portugal's president, now an analyst of international relations, says it's a key moment for both countries.

CARLOS GASPAR DIRECTOR, ORIENT MUSEUM "(It's) the first time that Chinese President comes after major investments were made in Portugal. In the past, relations were centred in Macau, then after 1999, they were no longer centred in Macao."

Portugal is President Xi's final stop on a tour that took him earlier to Spain, Argentina, including the G20 summit, and Panama.

AL GOODMAN LISBON "On the eve of President Xi's visit to Lisbon, the Portuguese government has told reporters it wants to keep Chinese investment flowing into Portugal. But it also expects China, to open its markets wider for the import of Portuguese products."

Over the weekend, China pledged to permit more foreign imports, while at the G20 summit of the world's leading economies. EDP, Portugal's leading electrical utility, is closely watching President Xi's visit. China's state-owned China Three Gorges company has a 23 percent stake in EDP, known for its renewable energy projects, and has put in a takeover bid, which is pending.

The visit also comes as more than a quarter-of-a-million Chinese tourists arrive in Portugal annually, in increasingly important group of visitors here. This hotel group executive sees opportunity, since he says the Chinese tend to be high spenders, and they show good signs of growth.

MIGUEL CYMBRON EXECUTIVE, VIP HOTELS "As the Chinese get more international, they get to learn foreign languages and so on, they will start travelling by their own. So they won't be very much stick to this group segment."

Analysts say some issues discussed during the Portuguese Prime Minister's visit to China two years ago will now, during President Xi's trip, result in a number of bilateral and business accords to be signed. Al Goodman, CGTN, Lisbon.