China promises Merkel help with debt crisis

China promises Merkel help with debt crisis
Photo: DPA
Chinese Premier Wen Jiabao told German Chancellor Angela Merkel on Friday that Beijing would continue to take "practical action" to support Europe in its battle to resolve its debt crisis.

“This reflects the spirit of China and Europe’s comprehensive strategic relationship and benefits the stable recovery and growth of the world,” Wen told Merkel in a telephone call, the official state news agency Xinhua reported.

Merkel thanked Wen for China’s support during the crisis, saying it had boosted confidence in Europe, Xinhua said.

No details were provided on the type of “practical action” China would offer but the country has previously pledged to buy more European bonds.

During a European tour earlier this month, Vice Premier Li Keqiang expressed support for the continent in its bid to recover from the financial crisis and promised to buy Spanish government debt.

Analysts have said China’s investment in European bonds makes sense for the export-driven economy as it seeks to diversify its world-beating foreign exchange holdings away from the dollar and support key markets for its overseas shipments.

AFP/mry


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