Chinese premier pledges to help US, EU through debt crisis

Sep 14, 2011, 3:08 GMT

Dalian, China - China'a premier promised to help the United States and Europe through their debt crises Wednesday, but insisted that all countries must 'first put their own house in order.'

'As the global economy slowly recovers, we still face a host of uncertainties and destabilizing factors,' Wen Jiabao said at the opening of the World Economic Forum's meeting in the north-eastern port of Dalian.

Wen highlighted the 'severe debt crisis' faced by some European nations, fluctuations in the US dollar that had 'resulted in the instability of commodity prices,' and inflationary pressure in developing nations.

'Under these circumstances, the Chinese economy is closely linked with the global economy,' he told 1,500 delegates from 90 nations at the meeting that has come to be known as the 'Summer Davos.'

'Countries must first put their own house in order and at the same time work together to advance the reform of the international economic and financial systems,' Wen said.

Wen said China was willing to raise its investments in Europe and urged the US to allow more Chinese investments and increase its exports to China by lifting restrictions on some high-technology exports.

'We have been concerned about the difficulties faced by the European economy for a long time, and we have repeated our willingness to extend a helping hand and increase our investment,' he said.

He urged the European Union to recognize China's status as a market economy to 'demonstrate sincerity' towards China and 'reflect our friendship.'

China is not considered a market economy by the EU, leading to additional import duties on many China-made goods.

China also hoped the United States would 'carry out appropriate economic policies and maintain fiscal and financial stability to protect the interests and confidence of investors,' Wen said.

'We believe the United States is capable of overcoming difficulties and achieving a full economic recovery.'

Wen said China was willing to engage in 'large-scale financial and economic cooperation' with the US.

He said China would continue economic policies aimed at boosting domestic demand and reducing its reliance on investment and exports.

But China's development remained 'unbalanced, uncoordinated and unsustainable,' while global economic recovery would also be 'arduous and complex,' he said.

'We will continue to get actively involved in economic globalization and work to build a fair and equitable international trading regime and financial system,' Wen said.