Global Biz

Recovery must be strong, says Wen

(China Daily)
Updated: 2010-10-05 08:25

BRUSSELS - Premier Wen Jiabao urged participants at the eighth Asia-Europe Meeting (ASEM) on Monday to manage with caution the timing and pace of an exit strategy, keep the exchange rates of major currencies stable and improve the decision-making mechanisms of international financial institutions in the fight to recover from the global financial crisis.

"Global economic governance reform is of fundamental importance in overcoming the financial crisis and we must explore ways to establish a more effective global economic governance system," Wen said during his speech at the ASEM opening ceremony in Belgium.

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"During the past two years, countries in Asia and Europe and around the world have made concerted efforts to counter the financial crisis and achieved notable results," said Wen, who was leader of the host country during the seventh ASEM gathering in 2008 when the financial crisis was breaking out.

Wen noted that some economies are still plagued by problems, such as high unemployment, sluggish growth and rising sovereign debt risks.

"It is, therefore, highly significant for ASEM leaders to gather together at this critical juncture and explore ways to achieve a strong and sustainable recovery of the world economy," the premier said.

The eighth ASEM will focus on global finance and economic governance, sustainable development and social and cultural exchanges between Asia and Europe.

The meeting this year will admit three new members - Russia, Australia and New Zealand - and the total number will be 48. Those taking part represent almost 60 percent of the world's population and more than 50 percent of world trade.

With many developing countries at ASEM, Wen advocated the principle of common but differentiated responsibilities when dealing with such issues as climate change.

He said equal attention should be paid to economic development and environmental protection.

During his speech, Wen encouraged ASEM partners to facilitate free trade and reject protectionism.

Concerted efforts are also needed to tackle global issues such as terrorism, regional turmoil and warfare, and natural disasters, Wen said, adding that China is always an active member of ASEM and seeks common ground.

Statistics show EU trade with Asia reached 750 billion euros ($1.02 trillion) in 2009, while total European investment in the region is estimated to be around 350 billion euros.

China-EU trade volume exceeded $300 billion in the first eight months of the year, a year-on-year rise of 36.2 percent.

Cui Hongjian, a scholar in EU studies at the China Institute of International Studies, said there are some marked differences between Asia and Europe.

"Asia is a vast area with great diversity, which is different from Europe and that makes issues in Asia more complex than those in Europe," Cui said. "Asia confronts more challenges, both in domestic development and in regional integration, than Europe."

Cui said the economic crisis made the EU realize the importance of cooperating with other powers to break the US-dominated international financial system - and China will be the first choice of the EU.

Wang Yusheng, a Beijing-based researcher and former Chinese diplomat, said the idea of "common but differentiated responsibilities" is practical.

"It is unreasonable and unfair to ask countries at different stages in their development to bear the same responsibilities," he told China Daily on Monday.

"China is doing, and will continue to do, its best to help solve global issues. In a fair world, the developed countries should take more responsibility."

Wen is on a four-nation tour that began in Greece and that will also take him to Italy and Turkey.

Ma Liyao and Yang Jing contributed to this story.