Chinese official dampens hopes of quick fix for Europe

Sep 15, 2011, 7:58 GMT

Dalian, China - A Chinese official dampened hopes of China providing a quick fix for Europe's debt crisis on Thursday, saying developed nations should first 'show their responsibility.'

'Every country has to fulfil its own responsibility first,' said Zhang Xiaoqiang, vice chairman of the National Development and Reform Commission.

'For the countries experiencing sovereign debt crisis, we are willing to lend a helping hand,' Zhang said at the World Economic Forum's 'Summer Davos' meeting in the north-eastern port of Dalian.

China is the world's second-biggest economy and has amassed some 3 trillion dollars in foreign exchange reserves.

'China will buy European bonds within our capacity,' Zhang said, but he warned that 'developed countries need to implement correct policies and show their responsibility.'

He urged developed nations to facilitate Chinese investment by welcoming the expected creation of jobs, echoing remarks by Premier Wen Jiabao at the forum on Wednesday.

Zhang's comments dampened hopes raised by Wen, who promised to help the United States and Europe through their debt crises.

Wen also said all countries must 'first put their own house in order,' but he said that China wanted to 'extend a helping hand and increase our investment' in Europe and the United States.

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

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