Britain praises Zhu the moderniser

BRITAIN and the European Union yesterday hailed the start of a new era of relations with China, built on intensified economic co-operation and where - plainly - Peking's much criticised human rights record will deliberately occupy a far less contentious part of the agenda.

After a Downing Street meeting between the Prime Minister and his Chinese opposite number, Zhu Rongji - the first Chinese premier to come to London since 1985 - Tony Blair's spokesman made clear that Mr Zhu, the architect of a sweeping economic reform programme, was already a fully paid-up member of the "modernisers' club".

However much he detests the term, Mr Zhu is already identified as the "Chinese Gorbachev" - a reference to the Soviet leader who took Britain by storm in his visit of December 1984.

Mr Blair apparently had been "fascinated" and "full of admiration" for the ambition of Mr Zhu's plans. An EU spokeswoman described the atmosphere at the first EU-China summit which followed as "really changed, with a really constructive feel".

As both sides intend it, the wary circling of the past will be no more. Most important, the EU underlined its support for China's entry into the World Trade Organisation, crucial to the integration of what is by one measure the world's second largest economy into the global system.

As expected, Royal & Sun Alliance has been given the go-head to operate in China's insurance market. Mr Zhu also indicated that other UK insurance companies would follow. He also signalled an early expansion of British air services into China, while the country's central bank will send officials for training at the Bank of England. Ultimately the goal is for "the best" Chinese companies to be quoted on the London Stock Exchange.

Predictably human rights got barely a look in. Tibet did come up, Mr Blair's spokesman said, and the Prime Minister expressed concern over various individual cases. But the mood was "positive, different from what it has been in the past."