China Commerce Official Urges Aid on European Debt
A Chinese Commerce Ministry official said China should help Europe resolve its sovereign-debt problem as much as it can. “It is our responsibility to help [Europe] within our capabilities,” said Chai Xiaolin, director of the ministry’s department of World Trade Organization affairs.
Helping Europe solve its sovereign debt problems is in line with China’s interests, she told reporters on the sidelines of an economics forum, though she didn’t specify what kind of help Beijing should provide. She also said that recognition of its “market economy” status by European nations wasn’t essential for China as it continues to open its economy to the outside world.
Those remarks differed from comments made by Premier Wen Jiabao, who voiced support for Europe on Wednesday but also called on European leaders to take “bold steps” to improve economic ties with the Asian giant. Mr. Wen specifically mentioned the granting of market economy status, a designation that would strengthen Beijing’s hand in international trade disputes, as a policy that would strengthen ties. Global markets have looked to China, which has $3.2 trillion in foreign exchange reserves, to step in and buy bonds or make direct investments. Beijing has offered moral support but has stopped short of making firm financial commitments.