–Adds Comments From EU Monetary Affairs Commissioner Rehn

BEIJING (MNI) – Chinese Vice-Premier Wang Qishan on Tuesday pledged
“concrete action” to help the countries of the European Union fight the
sovereign debt crises currently sweeping the Eurozone.

Wang also said at the opening of the EU-China High-level Economic &
Trade Dialogue that he hopes that the counter-crisis measures introduced
by the EU will have an impact “as soon as possible.”

“China supports the EU’s measures to stabilize financial stability
and will take concrete action to help European countries cope with the
debt crisis,” Wang said in his opening remarks.

Chinese Premier Wen Jiabao gave vocal support for Eurozone bonds
during a visit in October, which included a stopover in Athens, while
President Hu Jintao pledged in Lisbon the following month to help
Portugal through its crisis. EU officials noted earlier this year that
China has been active in Greek and Spanish debt markets.

There has been no indication of fresh Chinese activity in the
markets during the deepening of the crisis in recent weeks.

The Chinese vice-premier also repeated his government’s
long-standing calls for the lifting of the embargo of high-tech exports
to China as well as the granting of market economy status, a distinction
which would give the EU’s biggest trading partner an easier ride in
deciding trade disputes.

Wang, along with other senior officials including Commerce Minister
Chen Deming, met today with their European counterparts, including
European Commission Vice-President in charge of competition policy
Joaquin Almunia, Trade Commissioner Karel De Gucht and Commissioner for
Economic and Monetary Affairs Olli Rehn.

Rehn encouraged China in its support for the highly indebted
Eurozone economies, while reiterating the EU’s commitment to
market-determined exchange rates.

“The European Union has also put in place effective backstops and
we welcome the support of China for these measures,” Rehn said. “We
welcome the interest and support of our international partners,
including China, for our measures to safeguard financial stability in
the euro area.”

Asked directly about Chinese support for the EU during its crisis,
Rehn said no data were supplied by Chinese representatives.

beijing@marketnews.com
** Market News International Beijing Newsroom: 86-10-5864-5274 **

[TOPICS: M$Q$$$,M$A$$$,M$X$$$,MGX$$$]