China to the rescue

Eleven days ago, Wen Jiabao spoke with German Chancellor Angela Merkel in Beijing about the euro. Now the Chinese head of government has reiterated his pledge for support for the eurozone. “Our wish to help the EU find a solution to its debt crisis is genuine. We have faith in Europe and in the euro. China is prepared to become more active and to coordinate closely with the Europeans,” Wen said.

Open end

But just like after talks with Merkel, Wen provided no further details as to what this “coordination” would entail. At the beginning of February he mentioned the possibility of China's involvement in the International Monetary Fund (IMF) or in the euro rescue fund.

European Council President Herman Van Rompuy said talks with Wen were constructive and that consultations on the debt crisis would continue.

“We welcome the positive attitude and engagement China and Premier Wen himself have taken publicly towards the stability of the eurozone and of the European Union,” Van Rompuy said.

In the end, it was up to China to decide how it would contribute toward the stability of the eurozone, Rompuy continued. He, along with the President of the European Commission, José Manuel Barroso, discussed measures to stabilize the euro with Wen.

“Our message from the European side is clear: Europe is doing what it takes and will continue to do what it takes to restore confidence. We will do that, and we will achieve success,” said Barrosso.

The two senior European representatives and Wen Jiabao emphasized the interdependence between the two. The EU is China's largest trading partner and China is likely to become the EU's largest market this year. Both trade over a billion euros worth of goods each day.

Demands, new and old

Both agreed upon introducing an investment agreement. Van Rompuy also demanded better access to the Chinese market, improved protection of intellectual property and a reduction of protectionism. Beijing demanded - as is has for years - recognition as a market economy. Both were working on finding a quick and comprehensive solution to these demands, as announced in the closing statement after the talks.

With regards to human rights, China prevented anything being drawn up in the 2010 EU-China summit. But this time, it was different. Human rights have been mentioned in the new document. But only to the extent that dialogue and cooperation on the issue would be strengthened.

Author: Ruth Kirchner/sb
Editor: Manasi Gopalakrishnan