Chinese PM Wen Jiabao talks up euro ahead of UK summit
Sunday 26 June 2011 8:55 AM
China's Prime Minister Wen Jiabao has been talking up the euro ahead of a three-day business summit in Britain.
Mr Wen said China had increased its holdings of euro bonds in recent years and was confident the eurozone could overcome its problems.
Mr Wen is due to attend the UK-China Strategic Summit and meet Prime Minister David Cameron.
He will also visit the Chinese-owned MG car plant at Longbridge, near Birmingham.
The plant used to make MG Rover cars but is now owned by the Shanghai Automotive Industry Corporation.
Mr Wen will attend the launch of the MG6 Magnette, which is designed in Britain but assembled from parts manufactured in China.
He is also due to visit Stratford-upon-Avon and watch a short performance of Shakespeare's work.
"Debt crisis"
Mr Wen flew into Birmingham airport on Saturday night from Hungary, where he was asked about the debt crising in Europe, and especially the situation in Greece.
Mr Wen said that he was bringing trust at a time when the Europe's debt crisis was expanding.
China has foreign reserves of around $3tn and is believed to be diversifying some of its holdings from US dollars into euros and other currencies.
Last week dissident artist Ai Weiwei was released from custody in China, heading off protests which might have greeted Mr Wen's visit to Britain.
On Saturday news broke that another prominent Chinese dissident, Hu Jia, had been released from prison and reunited with his family.
He had campaigned for the environment and in support of patients with Aids.
But the Free Tibet pressure group has promised to hold demonstrations outside Downing Street when Mr Wen goes to meet Mr Cameron.
The UK-China Strategic Summit is an annual meeting - the last one took place in Beijing in November last year.
"Bidding for work"
With China having overtaken Japan as the world's second largest economy, many European companies are looking for investment, while Chinese acquisitions in Europe have also been increasing.
Mr Wen is thought to be leading a Chinese bid for work on the HS2 high-speed rail line between London and Birmingham.
Chinese ambassador Liu Xiaoming said last week China was looking for "flagship projects" and had "the knowledge, expertise and experience" to assist with HS2.
Earlier this month, Chinese PC maker Lenovo agreed to buy German electronics retailer Medion in a bid to boost its market share in Europe.
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