BBC News Online: Special Report

Blair meets Chinese Prime Minister

Mr Zhu is holding bilateral talks with Mr Blair at Number 10 Downing Street.

The British Prime Minister's official spokesperson said Mr Blair hoped the meeting would herald a change in relations between the two countries.

"It also shows we are determined to treat China as a major global force," he said

Mr Blair was expected not only to discuss economic reforms with Mr Zhu, but also point out the West's concern at China's human rights record.

Mr Zhu and Mr Blair are being joined by EU officials, including the European Commission President, Jacques Santer, and Trade Commissioner, Sir Leon Brittan, to discuss strengthening relations between Europe and China.

The two sides are expected to pledge that such top-level dialogue will become an annual event.

Mr Zhu's three-day visit, which began on Wednesday with an audience with the Queen, comes as China and Britain aim to build up relations in the wake of the Hong Kong handover.

The BBC Diplomatic Correspondent says Mr Zhu, who heads China's economic reform programme, is particularly interested in western expertise in developing a market economy.

On Wednesday he went on to meet representatives of the British business community at the Bank of England. The talks are believed to have centred on regulating financial markets and reforming state-run industries.

China's cutbacks

In China, the Communist Party newspaper, the People's Daily, has called on government officials to put aside self-interest and co-operate with plans to cut the state bureaucracy by half within next three years.

The Peoples Congress voted last month to transfer up to 4 million officials to businesses or to have them laid off. The number of ministries is to be reduced from 40 to 29.

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