China reassures that it does not “buy Europe”

The Prime Minister reassured German Chancellor Angela Merkel, in the visit to Canton.

China has neither the intention nor the capacity to “buy Europe”, said Premier Wen Jiabao to the German Chancellor, Angela Merkel and an audience of businessmen in Canton.

China, which is concerned about the crisis in the European Union, its first export market, wants more time to help the fight. The Asian giant has 3.2 trillion dollars in foreign reserves, the largest in the world. And it seeks to participate more in the European Financial Stability Fund (EFSF). China is “considering increased participation”, said Wen Jiabao to Angela Merkel at a joint media briefing in Beijing. Mr Wen said China was studying how it might lend Europe further support.

“China is also considering increasing its participation in the solution of the European debt crisis through the channels of the EFSF and ESM,” he said.