Wen moves to assure investors about property rights and reforms

Sep 13, 2006, 19:14 GMT

Hamburg, Germany - Chinese Prime Minister Wen Jiabao attempted Wednesday to allay foreign investors' concerns about his country's commitment to improving intellectual property rights and to pressing on with economic reforms.

Speaking at the opening of a major three-day business summit in the German port city of Hamburg, Wen said: 'China will continue along the path of reform. We will never back away from this.'

The Chinese premier went on to insist that Beijing had already taken steps to shore up intellectual property rights, which have emerged as a major issue of concern for foreign investors attempting to carve out new business empires in China's burgeoning economy.

'Now we have recognised the importance of this we will take it seriously,' Wen told the gathering, adding that his country had already taken action to beef up laws to ensure intellectual property rights were protected and that the rules were enforced.

'Their (foreign investors') intellectual property rights will be protected,' said Wen.

Organized by Hamburg's Chamber of Commerce, the summit comes against the backdrop of a booming trade between Germany and China with the northern German city emerging as the gateway between Asia's powerhouse economy and Europe.

Wen's visit to Hamburg formed part of a wider trip to Europe, which included a summit with European leaders in Helsinki held under the auspices of the ASEM Europe-Asia conference.

After holding talks in London with British Prime Minister Tony Blair earlier this week, the Chinese premier is due to travel to Berlin for a meeting Thursday with German Chancellor Angela Merkel.

Following on from comments he made in London, Wen also used his speech in Hamburg to try to reassure the international community about press freedom in China following recent criticism by international media groups.

He said that China's open policy with regard to the foreign press and financial services groups had 'not been changed.'

In his wide-ranging speech at the Hamburg summit opening, Wen also referred to Beijing's membership of the United Nations Security Council, saying: 'China is playing an active role in the world's hotspots,' including Iran.

The Chinese leader went on to underscore his country's drive to meet the strict CO2 emission targets as set out in the Kyoto agreement, which Beijing has signed. 'We are firm in our resolve,' he said. 'We need to do more to achieve our targets.'

Welcoming Wen Jiabao to the summit, chamber of commerce chairman Karl-Joachim Dreyer told the Chinese leader that 'you and your country are bolstering the economy by virtue of your very strong position on further development.'

'In doing so, we will concentrate on the phasing out of trade barriers between Europe and China,' Dreyer told the summit opening, which was held in Hamburg's historic town hall.

But while about 450 business leaders executives were gathering in Hamburg for the China meets Europe summit, a small but noisy group of protestors assembled outside the building to demonstrate against China's record on both human and religious rights.

Underscoring China's importance to Hamburg, about 60 per cent of German trade with China alone now passes through the port city.

Chinese shipping through Hamburg jumped by 29 per cent last year, underpinned by a sharp rise in trade with the fast-moving economies of Central and Eastern Europe and the Baltic Sea region. China is now the port of Hamburg's biggest customer.

Indeed, to members of China's burgeoning global business and trading community, Hamburg is now known as Hanbao - Chinese fortress.

Last year imports to Hamburg from China rose 5.5 per cent to 4.18 billion euros (5.4 billion dollars), while exports from the city soared by 67 per cent to 1.55 billion euros, according to the Hamburg Chamber of Commerce.

According to the Hamburg Economic Promotion Company HWF, there were just three Chinese companies with offices in Hamburg in 1985. That figure was up to 35 by 1990 and to 120 by 1995.

There are also about 700 firms from Hamburg based in China, about half of them in Shanghai, Hamburg's official partner city. They range from fashion group Tom Tailor, through to piano maker Steinway & Sons and publishers Gruner + Jahr.