China to step up role in euro debt crisis

CHINA’S PREMIER Wen Jiabao said he hoped Europe would remain stable and prosperous, and pledged China’s readiness to increase…

CHINA’S PREMIER Wen Jiabao said he hoped Europe would remain stable and prosperous, and pledged China’s readiness to increase its role in resolving Europe’s debt crisis, after meeting EU leaders in Beijing yesterday.

China was prepared to increase “its participation in resolving the EU debt problems”, Mr Wen said, after meeting European Council president Herman Van Rompuy and European Commission president José Manuel Barroso for the 14th China-EU summit in the Great Hall of the People in Beijing.

The EU leaders urged China to free up its markets, and also help persuade Iran to negotiate over its nuclear programme and help with efforts to end bloodshed in Syria.

Europe is China’s biggest export market and Beijing is worried that a significant slowdown in Europe could badly hit its economy.

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Beijing has repeatedly pledged support but has also urged EU leaders to get a grip on things. “Our message from the EU side is Europe is doing what it takes and will continue to do what it takes to restore confidence,” Mr Wen said after the meeting.

He did not go into detail on exactly how China would participate in helping resolve the debt crisis, although he has hinted that Beijing was considering offering help through the International Monetary Fund or bailout funds.

He said he hoped the EU would strengthen fiscal discipline and create a more favourable environment to deepen Chinese-EU financial co-operation.

The event had been scheduled for October, but it was postponed as EU leaders were forced to take crisis measures to combat the euro zone debt crisis.

Mr Barroso sought to soothe Chinese fears, insisting the EU was acting decisively and taking far-reaching decisions on the sovereign debt crisis.

“At the same time we are also working to strengthen the economic governance in the euro zone, to improve financial supervision and stabilise public finances, to implement the necessary structural reforms and to enhance our competitiveness,” he said.

“This is the way for Europe to give a contribution to global growth. This is the best contribution Europe can give – fiscal discipline, structural reforms, increase and reinforce economic governance in the euro area and in the European Union, financial stability,” he said.

Mr Van Rompuy said China’s support helped the EU and euro zone restore confidence, and they looked forward to further co-operation in strengthening the stability of the euro zone.

Mr Wen also vowed to work through the United Nations to seek an end to civil strife in Syria.

His comments came two weeks after China and Russia blocked a draft UN Security Council resolution that backed an Arab plan urging Syrian president Bashar al-Assad to quit.

China has been sharply criticised for its veto, a stance it defended as consistent with its practice of not interfering in the internal affairs of other nations.