FAR EAST:CHINA AND Japan have called for greater global co-operation to stop the world sliding into recession and have both sounded a tough note on the US economy.
China, the world’s second biggest economy, acknowledged Europe’s debt woes, but expressed confidence in the euro zone’s ability to stop its crisis spreading.
“Europe’s debt problems are still developing, and the US sovereign debt default risk is escalating,” Chinese Foreign Minister Yang Jiechi told reporters during an official visit to Poland.
However, he added: “China has always had confidence in the euro zone and the euro”.
He went on to say that all countries must further increase communication and co-ordination, push ahead reforms in the global financial system and improve governance of the global economy.
His remarks echoed similar sentiments in Japan, where Tokyo is struggling to cap the rise of the yen as investors favour the Japanese currency over the greenback and the euro.
Finance minister Yoshihiko Noda said global policymakers needed to confront issues such as the debt crisis, currency distortions, and broader concerns about the US economy.
Asian stock markets tumbled yesterday ahead of the Wall Street opening, although better-than-expected jobs data in the US helped stop further plunges on Wall Street yesterday.
China has been broadly positive on initiatives announced by EU leaders after a summit last month.
“China has increased its holdings of euro bonds in recent years. It will continue to support Europe and the euro in the future,” he said.
