China's Hu says wants euro stability ahead of G20

2nd November 2011, Comments 0 comments

China wants eurozone stability, President Hu Jintao said in an interview published on Wednesday ahead of the G20 summit in the French city of Cannes set to be dominated by the EU debt crisis.

"China sincerely wants stability for the eurozone and the euro," Hu told Le Figaro, but without saying what China could do to help Europe resolve its crisis, notably by participating in a rescue fund for indebted EU countries.

"Recent Councils of Europe adopted new ideas and measures to deal with the crisis, which shows the European will to work together to find a solution," Hu said.

"We hope that these measures will allow Europe to stabilise the market, to overcome the current difficulties and to promote revival and growth."

Hu said he hoped the G20 summit would see "the continuation of the win-win spirit of solidarity and cooperation" between the bloc's members.

They should "continue to cooperate hand-in-hand, strengthening macro-economic policy coordination, sending clear messages of solidarity to deal with the major challenges of the world economy."

The Chinese president said his country would keep on stimulating global growth, including through domestic consumption and imports.

"Today, China is accelerating changing its growth model, restructuring its economy, establishing a permanent growth mechanism for domestic demand and favouring growth driven by consumption, investment and exports," he said.

"China's trade surplus is only 3.2 percent of gross domestic product in 2010, compared to 7.5 percent in 2007. For the next five years, China will keep consumer growth at a fairly high level, with imports estimated at more than $8 trillion, which will be a major contribution by the Chinese economy to the world economy."

Hu called for the G20 to continue to examine the "inequalities between the developed and developing worlds."

"The contribution of emerging and developing countries to the global economic revival and growth must be appreciated objectively and correctly, their reasonable concerns must be appreciated, their representation and their voice in world economic governance should be increased."

The G20 summit opens on Thursday beset by uncertainty over the eurozone's future after Greece's shock announcement that it would hold a referendum on an EU debt bailout package, a move that threw the markets into turmoil.

© 2011 AFP

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