China willing to expand investments in Europe

“We have been concerned about the difficulties faced by the European economy for a long time, and we have repeated our willingness to extend a helping hand and increase our investment,” the official Xinhua News Agency cited Wen as saying in an address to the World Economic Forum in the northeastern coastal city of Dalian.

The sovereign-debt crisis that has engulfed a handful of Europe’s so-called peripheral countries must be prevented from spreading further, Wen said as he called for decisive action in preventing spillover into the global economy.

“Countries must first put their own houses in order,” Wen was cited as saying in his address on Wednesday by Bloomberg News. “Developed countries must take responsible fiscal and monetary policies. What is most important now is to prevent the further spread of the sovereign-debt crisis in Europe.”

Wen didn’t provide details on specific support measures China was considering.

Wen also urged European Union leaders to adopt a bold and strategic view toward relations with China.

In reference to its trade status, Wen said China’s full market economy recognition is slated by 2016.

“If EU nations can demonstrate their sincerity several years earlier, it would reflect our friendship,” Xinhua cited Wen as saying.

Developed market status, a designation long sought after by China from the U.S. and Europe, would enable more favorable treatment in trade disputes.

In other comments Wednesday, Wen said China’s committed to boosting domestic demand while keeping its growth momentum on track as a way of helping to support global growth.

“I believe China’s economy can achieve longer-term, better-quality growth. This will be our new contribution to strong, sustainable global growth,” according to a summary of Wen’s opening address published on the World Economic Forum’s Web site.

He noted uncertainties and risks were on the rise, while jobless rates were high and showing few signs of improvement in developed nations and inflation was edging up in developing ones.

“Both advanced and developing economies are slowing down, and sovereign-debt risks are rising for some countries, causing intense fluctuations in financial markets,” he said.

An editorial published by the Xinhua news agency on Wednesday said China increased its holdings of euro bonds and promoted investment in the euro zone as part of supportive measures since sovereign-debt concerns surrounding Greece first surfaced in 2009.

Wen also said he was confident the U.S. would bring down its budget deficit and foster the creation of jobs by growing its economy.

He urged the removal of barriers on investment by Chinese companies in the U.S., as well as lifting of restrictions on U.S. exports to China.

Source; http://www.marketwatch.com