SINO-FRENCH RIFT SPARKS BUSINESS FEARS

Laurence Parisot, head of Medef, the French employers' body, said she was “concerned” at the Chinese government's decision to call off an EU-China summit in protest at plans by President Nicolas Sarkozy to meet the Dalai Lama, the exiled Tibetan leader.

Ms Parisot expressed some irritation with Beijing. “I don't see why Nicolas Sarkozy shouldn't meet the Dalai Lama. I need explanation,” she said.

The latest tensions come only months after protests in Paris against the Beijing Olympics triggered a nationalist backlash in China and a boycott of French products and businesses – especially Carrefour supermarkets.

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