China’s pledge to continue investing in Europe

“We want to see a stable and prosperous Europe, and we are always confident in the European economy and the euro,” Li told the Sino-Europe People-to-People Dialogue on Friendship and Co-operation, a forum attended by Chinese and European business delegates.

Li said China will continue to invest in Europe.

“The Chinese government will proactively create conditions to further expand its trade and investment ties with Europe and continue to treat Europe as one of the primary investment markets,” Li added.

His comments came hours after US President Barack Obama urged “more effective co-ordinated fiscal policy” by the euro area states.

Chinese Premier Wen Jiabao said Beijing was willing to help its biggest trading partner, but added that Europe must stop the crisis from growing.

Li reiterated that China sees great potential to develop trade ties with the European Union, the largest trading partner of China, and Beijing would be supportive of Europe.

“We support the current economic and financial adjustment measures that some European countries have taken to stabilise markets, balance fiscal positions and push forward structural reforms,” Li said.

“Meanwhile, we will continue to enhance communication, coordination and co-operation with European countries in areas of macro-economic policy making, international financial system reform and global governance,” Li added.

Finance ministers of the BRICS countries will take a call on supporting the euro zone at a meeting in Washington later this month, R Gopalan, economic affairs secretary in India’s Ministry of Finance, said.

Reports have said that BRICS countries are considering a mechanism to support growth in the faltering euro zone, possibly by buying European debt, but no officials have confirmed the reports.