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Visiting British Prime Minister Tony Blair said Tuesday that Britain and China are "natural partners for each other" in economic co-operation.

Blair was addressing a Sino-British entrepreneurial summit yesterday afternoon during a short visit to Shanghai.

The Chinamoney Entrepreneurs Summit brought together around 150 leading Chinese entrepreneurs and senior representatives of UK companies in China.

"Links between UK companies and Chinese enterprises are getting closer," said Blair. "I hope we will consolidate the business partnership that has been created... and I hope increasingly you will look at the UK as a natural partner."

Before arriving in Shanghai, Blair met students from Tsinghua University in Beijing and answered some of their questions.

Students asked 14 questions during the 45-minute question-and-answer session on topics that varied from the Iraq War and the suicide of British scientist David Kelly to the high tuition fees that the overseas students in Britain have to pay.

Asked how he felt when he heard of Kelly's suicide and how Blair could regain the British people's trust after the Iraq War, Blair said: "This is a desperately sad time for the family of Dr Kelly. His funeral has not been held yet, and I do not want to say more about this situation. There will, as there should, be a proper inquiry."

The prime minister, facing growing political pressure, sidestepped a question about his case for waging war against Iraq and also did not explain how he intended to regain people's trust.

Lu Yanan, a 21-year-old senior undergraduate at Tsinghua's School of Journalism and Communication, said of Blair's answer to the question about Kelly: "He expressed his sorrow, but I don't think he answered me directly and clearly."

Dong Guanpeng, assistant to the dean at the Tsinghua journalism school, presided over the question-and-answer session. He said he felt that the meeting had been interactive and truly student-centred.

"There was never a single dull moment or pause," he said.

After the questions were over, Cherie Blair, the prime minister's wife, sang a verse of The Beatles song "When I'm 64," surrounded by students.

After his visit to Shanghai, Blair flew to Hong Kong.

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