• IS provokes sea-change

    It has been a grave mistake to defy both Russia and France, says Leopold Scholtz.

  • Nene's SAA nemesis

    No political figure seems to have the guts to speak out against Dudu Myeni, says Solly Moeng.

  • The mp3 revolution

    Ian Mann takes a look at the war between digital music and the compact disc.

All data is delayed
See More

China to help resolve eurozone crisis

Sep 20 2012 15:53

Brussels - Chinese Premier Wen Jiabao said on Thursday that Beijing will maintain its efforts to help resolve the eurozone debt crisis, after months of investing in European sovereign bonds.

"China will continue to play its part in helping resolve the European debt issue through appropriate channels," Wen told a business summit after political talks with European Union leaders in Brussels.

"In the past few months China has continued to invest in bonds of European governments... and discussed ways of cooperation with the ESM," Wen said, referring to the European Stability Mechanism, a new €500bn rescue firewall set up by eurozone leaders and due to become operational next month.

"Europe is on the right track in tackling its debt issue," Wen told the audience. "What is crucial now is to fully implement the reforms" it has agreed on economic governance, he said.

Wen's remarks saw a shift in tone from the "serious concerns" about spillover effects hurting China that he had expressed just three weeks earlier when German Chancellor Angela Merkel visited Beijing.

Almost half of all European exports to China come from Germany, and a quarter of all European imports from China are into Germany.

Wen highlighted that China had pumped tens of billions of dollars into the International Monetary Fund this summer, as global economies joined forces in a bid to limit the damage from a global economic downturn.

And he said this was done for "strategic" reasons, saying the "essence" of China's "stable" relationship with the EU bloc was "long-term" and "not affected by ideological differences or temporary setbacks."

Having visited 18 EU member states since 2003 to cement a trading relationship worth a €1bn a day, Wen said the present challenges also presented "huge opportunities" on both sides.

While the economic picture was at a "critical juncture," China and the EU were working on a host of levels to "scale-up" trade.

The levers through which this would be achieved, Wen said, involved two-way investment with a "need to expand cooperation in infrastructure development" that could see Beijing invest in new EU project bonds.

Likewise investment in technological innovation, where he cited nuclear energy or the information technology sector, or European offers of expertise whether in smart cars or sewerage as China steps up urban planning.

*Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

china  |  eu  |  eurozone debt crisis



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote