"China is concerned. The debt issue is at a critical juncture," Chinese Foreign Ministry spokesman Liu Weimin told the press in Beijing. "We believe that as China's largest trading partner and the largest economy in the world [collectively], it is important for the European Union to resolve this issue."
European leaders have called on China, which holds the world's largest foreign exchange reserves, to invest in the bailout fund to rescue struggling EU economies.
Beijing has so far made no firm commitment to provide financial assistance, but Chinese Premier Wen Jiabao said last month the country was considering granting help through the International Monetary Fund or bailout funds. But that would probably come only in exchange of voting rights within the international organisations.
On a bilateral level, China said it was willing to support the most troubled of all countries, Greece. The Chinese ambassador in Greece, Du Qiwen, said China was committed to support the troubled country “politically and economically” in order to help it recover from its debt crisis.
European Council President Herman Van Rompuy, who will attend the EU-China summit together with European Commission President José Manuel Barroso, stressed in a China Daily interview that the debt crisis in the euro was being solved by the eurozone member countries.
“Far-reaching measures have been taken to restore confidence and growth, through financial firewalls, strict fiscal policies and structural reforms. The euro is a part of the DNA of Europe, a common currency at the heart of the daily life of more than 300 million citizens. All European leaders are determined to do whatever needs to overcome the crisis,” Van Rompuy said.
In Beijing, Wen Jiabao said his country had no intention to “buy out Europe,” he told the state-run People’s Daily.
Buying spree
Chinese companies and funds have ramped up their investment in Europe, buying up utilities, energy firms and even luxury yacht makers, in a move welcomed by some but eyed with concern by others.
"China not only does not have the appetite or ability to 'buy out Europe' or 'control Europe' like some in Europe have said, but also supports the euro and European Union from start to finish," the Chinese premier said, trying to calm concerns that a wave of investment by Chinese companies and government-backed funds will give Beijing too much influence over struggling eurozone economies.
Speaking ahead of the summit, Van Rompuy said the EU would insist on addressing economic issues, such as protectionism, and safeguarding investments and intellectual property, and “we will stress the importance of creating a level playing field for European players. “
Since bilateral ties between the EU and China were established 36 years ago, trade relations have expanded from €4 billion in 1978 to €395 billion in 2010. Today, the EU is the biggest destination for Chinese exports and the second supplier to China, after Japan. For the EU, China is the second trading partner, after the United States, and is close to surpassing the US.
In 2010, the EU imported €282 billion worth of goods from China, up by 31% from 2009 levels and 18.8% of total EU imports. China thus remains Europe's biggest source of manufactured goods. Data for 2011 through November show another 5% increase in imports from China over 2010 levels.
Human rights
EU top officials will also “politely but clearly highlight the concerns our member states and our societies harbour over some aspects of human rights in China.”
The EU-China human rights dialogue was set up in 1995 and is held twice a year, rotating between China and the EU, at the level of senior officials.
Not much progress has been achieved in the human rights dialogue and “this is regrettable,” said an EU official ahead of the summit.
Airline emissions row
The row charging airlines flying to Europe for their carbon emissions is also likely to be an issue in the talks. The Chinese government said earlier this month it had barred the country’s airlines from abiding by the EU scheme, which applies a charge for carbon emissions on all flights into and out of Europe.
But the European Commission, which polices the scheme, warned that financial penalties would apply to airlines that refuse to comply. According to EU sources, the scheme would add less than €2 per passenger to the price of a flight from Shanghai to Europe.
