Spain and China were Tuesday seeking to boost economic ties as Chinese Vice Premier Li Keqiang began a two-day visit to Spain, dpa reported.
Li discussed the Spanish and European economic situation with Economy Minister Elena Salgado, the Spanish government said in a press release.
Li also met Industry Minister Miguel Sebastian. Spain was his first stop on a European tour which will also take him to Germany and Britain.
Prior to his visit, Li stressed China's willingness to boost the wavering trust of financial markets in the Spanish economy by continuing to buy Spanish public debt. Chinese diplomats declined to say how much of the debt Beijing has acquired so far.
"China is a responsible long-term investor, both in the European financial market and in the Spanish financial market. China has confidence in Spain's financial market. It has purchased Spanish treasury bonds and will buy still more," Li wrote in the Spanish daily El Pais.
Beijing was seen by Spanish analysts as trying to diversify its currency reserves and to stabilize the euro, the currency of one of its most important export markets.
The purchase of Spanish debt "is worthless for China at this moment from the economic point of view," Chinese international relations professor Shi Yinhong told the German Press Agency dpa in Beijing.
"The Spanish financial market is now very bad," he explained. "What the Chinese government wants is political benefit more than economic profit from not only Spain, but also other European countries."
China was expected to seek Spanish support for an eventual decision by the European Union to lift the arms embargo it imposed after hundreds of people were killed in the Tiananmen Square protests in 1989.
During Li's visit, Madrid and Beijing were expected to sign 10 private and four public commercial agreements in fields including foodstuffs, telecommunications, transport, energy and investment policy.
On Wednesday, Li was scheduled to meet King Juan Carlos, Prime Minister Jose Luis Rodriguez Zapatero and Foreign Minister Trinidad Jimenez. He was also due to co-chair with Sebastian a breakfast meeting of more than 100 Chinese and Spanish entrepreneurs.
Spain and China established a "strategic association" to strengthen relations in 2005.
Spain has adopted austerity and structural measures in an attempt to deal with its economic problems, including a budget deficit of 11.1 per cent. There has been concern that Spain might follow Greece and Ireland in needing an international bailout.