“China believes the EU will be able to overcome its difficulties and China remains willing to expand its investment in the EU,” Wen told an audience of global business leaders. “We have on many occasions expressed our readiness to extend a helping hand.”
However, he declined to name any specific projects or investments the country would make.
Wen said China is willing to invest more in Europe when the Europeans take measures to prevent the debt crisis from spreading. China has about a quarter of its record foreign currency reserves invested in euro assets.
Speaking at a World Economic Forum in Dalian, China, Wen said policymakers in Europe and the U.S. should “first put their own houses in order” and then focus on “responsible fiscal and monetary policies” and open markets, rather than looking to China for a bailout.
“What he is basically saying is China wants to help, they want to invest, but we can’t help you take the proper measures to control the debt crisis, you’ve got to do that on your own,”
William Rhodes, a senior adviser to Citigroup, told Bloomberg.
China can best help the global economy by ensuring strong and steady economic growth at home, Wen said. China’s economy grew at an annual 9.5% rate in the second quarter.
With regard to the Chinese economy, Wen said China will keep monetary policy tight to rein in inflation. Inflation was 6.2% in August, near a 3-year high. China was also proceeding with structural reform and consumption-boosting measures to sustain the country’s economic growth, he added.
Europe’s shorts and longs have been headed in opposite directions this year. The Dow Jones STOXX 50 ETF (NYSE:FEU) is down about more than 15%, while the ProShares UltraShort MSCI Europe ETF (NYSE:EPV) is up more than 5%.
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