The EXPO is a wonderful opportunity for Chinese to broaden their horizons. It will also allow other nations to help shape China's view of the world while exploiting opportunities thrown up by China's development.

I had these thoughts when visiting the EXPO on May 1. It is not possible to visit all 170 pavilions in one day. To be honest, with over 200,000 visitors per day for the first two days, it was not a pleasant experience to have to queue for long periods in the baking sun. It brought home to me the challenges China faces as a result of its huge population.

The government relocated some 270 factories from the EXPO site relatively smoothly. But reportedly, it was not so easy to move the people who used to live here. The EXPO is stunning, but any intelligent visitor is bound to wonder how much the government spent on it. The official figure of RMB 16bn is far lower than western estimates of US$58bn.

But at least some of the money has been put to good use. Shanghai has built ten new subway lines over the last 2-3 years, making Shanghai only to London in terms of metro mileage. Personally I have no problem with whatever amounts are spent, as long as the government submits its budget to the People's Congress for review and approval.

In Shanghai I had lunch with the Malaysian Minister Dato Sri Ng Yen Yen and the Malaysian Ambassador of Tourism Datuk Ooi Chean See. Both are of Chinese origin and as we chatted in Chinese, the conversation turned to the Changyu wine we were drinking. The Changyu wine business was started by Mr. Cheong Fatt Tze who was born in Guangdong but made his fortune in Penang, Malaysia. A former minister of the Qing government, he set up his wine business in Yantai, Shandong Province. In 1915 Changyu wine won a gold medal at the EXPO in San Francisco. When President Hu entertained guests at the EXPO welcome banquet he toasted them with Changyu.

Lunch on May 1, with EU High Representative for Foreign Affairs and Security Policy, Ms. Catherine Ashton, was more political. Ms. Ashton, who was addressed as "Foreign Minister" of the Union by the Chinese side, suggested the EU and China should cooperate on joint land operations to combat piracy in Somalia.

This was a proposal that China and the EU could at least consider, but when the discussion turned to Iran, things were not so easy. The EU needs China's cooperation in curtailing Iran's nuclear ambitions, and it is in China's interest to contain nuclear proliferation. But economic development rather than arms control is China's biggest concern. And as long as the EU and the US continue to disrespect China by persisting with the arms embargo imposed two decades ago, there will be a gulf of distrust between the two sides.

Despite this, French President Nicolas Sarkozy, and José Manuel Barroso, president of European Commission, attended the opening of the EXPO. It seems that both Changyu and the EXPO are increasing China's soft power. But we should bear in mind that soft power comes from institutions and ideas, not EXPOs. The EXPO will not resolve the arms embargo, and it is far too soon to tell if China and France have left their differences behind. After all, President Sarkozy has not promised never to meet the Dalai Lama again.

The author is a columnist with China.org.cn. For more information please visit: http://www.china.org.cn/opinion/node_7082361.htm