Solving European debt crisis 'urgent' : Wen Jiabao

German Chancellor Angel Merkel (R) attends a welcoming ceremony with Chinese Premier Wen Jiabao in Beijing, yesterday

China's Premier Wen Jiabao said yesterday it was "urgent" to solve the European debt crisis, after talks with German Chancellor Angela Merkel who is looking to boost confidence in Europe on an official trip.
The German leader is in China for a three-day trip aimed at reassuring Beijing about the situation in Europe, where a sovereign debt crisis has seen a wave of credit-rating downgrades and brought Greece to the brink of bankruptcy.
Speaking at a press conference held jointly with Merkel, Wen also called on the international community to cooperate on Europe – China's top export market.
Beijing has watched with increasing concern as the crisis has deepened, repeatedly urging European leaders to get a grip on the situation and put their house in order.
In a speech at the Chinese Academy of Social Sciences – a leading government think tank – earlier Thursday, Merkel sought to assure Beijing that the crisis was under control.
"The euro as our common currency has made Europe stronger," she said.
"The European Union – in particular those states that have adopted the euro – has made considerable progress in the last two years."
The leader of Europe's biggest economy said EU members were now "deeply convinced" that they were on the right track with a treaty agreed by most EU nations on Monday that aims to stop countries from overspending.
The treaty – pushed by Germany and the European Central Bank – will require governments to introduce laws on balanced budgets and impose near-automatic sanctions on countries that violate deficit rules.
It will come into force after at least 12 euro nations ratify it, and only those countries that sign up will be able to access bailout aid from a new rescue fund.
Wen told reporters China was still considering getting involved in the European Financial Stability Facility (EFSF) – a temporary rescue fund established to help struggling economies in Europe – and another, newer fund.
The head of EFSF has expressed interest in China – the world's second largest economy – investing in the fund, but so far nothing has been decided or announced.
On the diplomatic front, Merkel said in her speech China "must use its influence to tell Iran that transparency is a must and its nuclear programme must be open".
A German government source said earlier the chancellor would also call on Beijing not to take advantage of Europe's ban on Iranian oil – imposed on Tehran over its nuclear stance – to boost its own imports of the resource.
The US, the European Union and others have ramped up sanctions to target Iran's oil industry and central bank since a UN atomic watchdog report in November raised suspicions Tehran had done work on developing nuclear weapons.
Iran insists its nuclear drive is for peaceful purposes and that the International Atomic Energy Agency report was based on "forgeries" provided by its enemies.
Merkel, who will meet President Hu Jintao today, also touched on Syria in her earlier speech, saying it was "important that the international community speak with one voice at the United Nations".
The German leader is expected to ask for Beijing's support for a UN Security Council resolution against Syria, where fighting between President Bashar al-Assad's security forces and rebels is escalating.
China has a veto at the Security Council.
Level field in trade
On bilateral trade between China and Germany – which reached USD 169 billion in 2011, an 18.9-percent increase from the previous year – Merkel called for a level playing field for German firms operating in China.
"As German entrepreneurs, we want to be treated on an equal footing with Chinese companies," she said.
Merkel's trip comes just days after deadly unrest hit China's Tibetan-inhabited areas and she indicated that human rights would be on the agenda.
"Germany has always advocated an open, political dialogue, including on controversial issues such as human rights and building a state of law," she said.
Today Merkel will fly to the southern province of Guangdong – where nearly 500 German companies are already present – with Wen and executives from the energy, chemicals, engineering, banking and electronics sectors.
Rare earths – valuable elements that are used in the production of high-tech products and which are of "very great importance for the German economy" – will also be on the table, a German government source said.

Chancellor to meet bishop in China

German Chancellor Angela Merkel will meet a Catholic bishop this week during an official visit to China, where religious activities are strictly monitored, a diplomatic source said yesterday.
The German leader, who is Protestant, will meet on Saturday with Gan Junqiu the state-backed bishop of Guangzhou, capital of the wealthy province of Guangdong, a German diplomatic source who asked not to be named told AFP.
The source did not say why Merkel – who arrived in Beijing yesterday on a trip aimed at boosting confidence in the eurozone and also lobbying China on Iran and Syria had decided to meet the bishop.
The German leader is scheduled to fly to key manufacturing hub Guangdong today with Premier Wen Jiabao and executives from the energy, chemicals, engineering, banking and electronics sectors, after holding talks with President Hu Jintao.
Gan is part of the official church but received papal approval before being ordained – unlike other bishops in China who have not received consent from the pope, angering the Vatican.