Chinese leaders warn of deteriorating Euro debt crisis stress IMF reform

Eurpean Debt Crisis

Source:¸ 11th November 2011

Top Chinese leaders have warned of the dangers of a deteriorating European debt crisis¸ vowing to participate in reforms of the International Monetary Fund (IMF) during a two-day visit to China by the mechanism’s chief¸ Christine Lagarde.


“The European sovereign debt crisis has raised the fiscal and financial risks in developed economies¸ throwing in severe challenges to world economic recovery¸” Premier Wen Jiabao told Lagarde during a Thursday meeting.

Lagarde¸ who was appointed Managing Director of the IMF in June with China’s support¸ is on her first trip to Beijing after she took office.

During the visit¸ Lagarde discussed the world economy and the European debt crisis with Premier Wen¸ Vice President Xi Jinping¸ Vice Premier Wang Qishan and central bank governor Zhou Xiaochuan.

“China supports the counter measures taken by the European Union¸ the European Central Bank and the IMF in coping with the sovereign debt crisis¸” Wen said.

The debt crisis¸ which broke out in Greece in 2009¸ is hindering the world economic recovery¸ with particular recent worries in Italy¸ the Eurozone’s third-largest economy¸ and in Portugal and Ireland.

“We hope to work closely with various parties… to preserve international financial stability and beef up confidence and driving force for the world economy¸” Wen said.

The growth of two-way trade between the European Union (EU) and China¸ now the EU’s largest trading partner is slowing due to the crisis.  Read more

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