BEIJING—Chinese Premier Wen Jiabao on Friday sought to assuage concerns over Chinese investment in Europe, saying China has no intention to "buy" the continent.
At a business forum in the southern province of Guangdong during a state visit by German Chancellor Angela Merkel, Mr. Wen said China is "willing to cooperate with Europe to fight the current crisis.
""Some people say this means China wants to buy Europe. This is a concern and doesn't fit reality,'' he added. "China doesn't have this intention, and doesn't have this ability."
Mr. Wen didn't elaborate on the concerns that he was referencing, but he may have been alluding to a common analysis that European governments will need to offer political concessions to China to secure aid in overcoming the euro-zone sovereign-debt crisis.
On Thursday, in a joint appearance with Ms. Merkel, Mr. Wen dangled the possibility of increased Chinese investment in Europe's bailout funds.
But he stopped short of outlining any specifics, merely staying that China was "investigating and evaluating ways" to become "more deeply involved" in Europe's twin bailout funds, the European Financial Stability Facility and the not-yet-established European Stability Mechanism.
Mr. Wen's assurances on Friday highlight how the issue of Chinese aid to Europe has become politically charged.
By publicly airing several points of contention between Germany and China—from human rights to sanctions on Iran—earlier during her state visit, Ms. Merkel seemed determined to demonstrate that she wasn't prepared to appease China on those issues in return for financial assistance.
Within China, the prospect of using the country's massive foreign-exchange reserves to bail out indebted European nations is also controversial.
Many Chinese view the reserves as the hard-won fruit of their labor and question why they should be loaned out to nations with higher per-capita incomes and generous social benefits.
In a speech before China's top government think tank on Thursday, Ms. Merkel also aired the complaints of German businesses operating in China.
"What do representatives of foreign business need? What do representatives of German business talk about?
They need open markets," she said. "We also need effective protection for intellectual property, of course. Businessmen are always saying that one needs access to the relevant financing in order to develop dynamically in China."
Mr. Wen and other speakers at the business forum on Friday addressed some of the concerns raised by Ms. Merkel.
German businesses can "relax" about intellectual-property rights in China because the country is putting a lot of effort into IP protection, realizing it is also in the interest of Chinese companies, he said.
"Although we've only had 30 years of reform, more and more we realize that protecting intellectual property is not just for foreigners—it's beneficial for China," he said.
Speaking at the same event, China Development Bank Corp. Chairman Chen Yuan said the state-owned policy lender is willing to work with German financial institutions, while Yang Yuanqing, chairman of Chinese computer maker Lenovo Group Ltd., predicted that China will become the largest consumer market in the world.
Earlier on Friday, Ms. Merkel met with Chinese President Hu Jintao. According to a report by the state-run Xinhua news agency, Mr. Hu pledged to step up cooperation with Germany and to adopt an "even broader perspective and more open attitude" toward the relationship.
wsj.com
At a business forum in the southern province of Guangdong during a state visit by German Chancellor Angela Merkel, Mr. Wen said China is "willing to cooperate with Europe to fight the current crisis.
""Some people say this means China wants to buy Europe. This is a concern and doesn't fit reality,'' he added. "China doesn't have this intention, and doesn't have this ability."
Mr. Wen didn't elaborate on the concerns that he was referencing, but he may have been alluding to a common analysis that European governments will need to offer political concessions to China to secure aid in overcoming the euro-zone sovereign-debt crisis.
On Thursday, in a joint appearance with Ms. Merkel, Mr. Wen dangled the possibility of increased Chinese investment in Europe's bailout funds.
But he stopped short of outlining any specifics, merely staying that China was "investigating and evaluating ways" to become "more deeply involved" in Europe's twin bailout funds, the European Financial Stability Facility and the not-yet-established European Stability Mechanism.
Mr. Wen's assurances on Friday highlight how the issue of Chinese aid to Europe has become politically charged.
By publicly airing several points of contention between Germany and China—from human rights to sanctions on Iran—earlier during her state visit, Ms. Merkel seemed determined to demonstrate that she wasn't prepared to appease China on those issues in return for financial assistance.
Within China, the prospect of using the country's massive foreign-exchange reserves to bail out indebted European nations is also controversial.
Many Chinese view the reserves as the hard-won fruit of their labor and question why they should be loaned out to nations with higher per-capita incomes and generous social benefits.
In a speech before China's top government think tank on Thursday, Ms. Merkel also aired the complaints of German businesses operating in China.
"What do representatives of foreign business need? What do representatives of German business talk about?
They need open markets," she said. "We also need effective protection for intellectual property, of course. Businessmen are always saying that one needs access to the relevant financing in order to develop dynamically in China."
Mr. Wen and other speakers at the business forum on Friday addressed some of the concerns raised by Ms. Merkel.
German businesses can "relax" about intellectual-property rights in China because the country is putting a lot of effort into IP protection, realizing it is also in the interest of Chinese companies, he said.
"Although we've only had 30 years of reform, more and more we realize that protecting intellectual property is not just for foreigners—it's beneficial for China," he said.
Speaking at the same event, China Development Bank Corp. Chairman Chen Yuan said the state-owned policy lender is willing to work with German financial institutions, while Yang Yuanqing, chairman of Chinese computer maker Lenovo Group Ltd., predicted that China will become the largest consumer market in the world.
Earlier on Friday, Ms. Merkel met with Chinese President Hu Jintao. According to a report by the state-run Xinhua news agency, Mr. Hu pledged to step up cooperation with Germany and to adopt an "even broader perspective and more open attitude" toward the relationship.
wsj.com
No comments:
Post a Comment