China's money
September 14, 2011
At the opening of the summer meeting of the World Economic Forum, Chinese Premier Wen Jiabao has pledged China will "continue to expand investment in Europe."
Europe's struggling economies are looking to cash-rich China as a possible rescuer, as they try to cope with mountains of debt. China is sitting on more than $3 trillion in foreign currency reserves and has already committed to investing in Greece, Spain and Portugal.
China will continue to contribute to a "robust, sustainable and balanced growth of the world economy," Wen told delegates in the Chinese port city of Dalian.
Making his speech at the opening of the 'Summer Davos', Wen told delegates he was convinced the European economy would recover. However, he warned Western investors to "put their house in order" to protect foreign investors.
Market economy status
In return for investment, Wen urged leaders to reciprocate by granting China full market economy status years earlier than agreed.
"Based on the WTO (World Trade Organization) rules, China's full market economy status will be recognized by 2016. If EU nations can demonstrate their sincerity several years earlier, it would reflect our friendship," he said.
The status is a technical designation that would remove certain restrictions to Chinese exports and investments in Europe. EU leaders have said in the past that the Asian giant has not yet met the necessary conditions, pointing out that most of China's largest companies are state-owned and their leaders appointed by the government.
Wen's words were echoed by the Chinese official state news agency Xinhua in a commentary. Following the purchase of bonds from several European countries, Xinhua wrote it was "a pity" that the EU shows "no sincerity on the issue of recognizing China's market economy status."
The three-day summer session of the WEF was established five years ago, and this year has attracted about 1,500 business leaders and government officials from 90 countries.
Author: Catherine Bolsover (AFP, Reuters)
Editor: Andreas Illmer