China’s Premier Wen Jiabao said Friday the Asian giant had neither the ability nor the intention to “buy Europe”, amid concerns over growing Chinese investment in debt-stricken eurozone economies. China is “willing to cooperate with Europe to fight the current crisis. Some people say this means China wants to buy Europe”, Wen told a German-China business forum in the southern city of Guangzhou. “This a concern and doesn’t fit reality. China doesn’t have this intention and doesn’t have this ability.” German Chancellor Angela Merkel, in China for a three-day visit to boost her host’s confidence in Europe, also attended the forum along with executives from the energy, chemicals, engineering, banking and electronics sectors.
There are growing concerns in Europe that a recent wave of investment by Chinese companies and government-backed funds will give Beijing too much influence over struggling European economies. China has so far made no firm commitment to provide financial assistance, although Wen said Thursday it was considering getting more involved in bailout funds through the International Monetary Fund. At the forum Wen also touched on the politically sensitive topic of rare earths — 17 elements crucial in the manufacturing of many high-tech products — amid accusations China unfairly restricts exports of the valuable minerals. China — the world’s largest producer of rare earths — “has no discrimination when it comes to foreign companies”, Wen told the forum.
