THE ASIAN-EUROPEAN summit which opened yesterday in the Chinese capital was “more than simply an exchange of views”, Taoiseach Brian Cowen said, but it could be a step towards better regulation of the world economic order.
The Asia-Europe Meeting (ASEM) was founded in 1996 to promote dialogue between EU member states, the European Commission and the countries of the Asian continent. More than 40 states are represented at the gathering in the Great Hall of the People, which concludes today.
Mr Cowen arrived in Beijing on Wednesday to take part in an Irish trade mission and is staying on to take part in the ASEM summit.
Speaking to the Irish media contingent covering his trip to China, he said that, in closed session, the Asian and European leaders had discussed the need to bring forward reform of the international financial structure.
“The discussion we had today and this evening on the international financial and economic situation was more than simply an exchange of views. There is a recognition that co-ordination has to take place and be stepped up, not only regionally but globally as well,” said Mr Cowen, whose own address to the summit has been postponed until today.
Looking forward to the economic summit of world leaders in Washington on November 15th, the Taoiseach continued: “We spoke about the need for more international regulatory supervision and to reform the present structure, and to recognise that the international financial crisis is an opportunity to avoid trends towards protectionism. Free trade is a means by which emerging and developing countries can be helped, but that globalisation has to be rules-based.”
On China’s role he said: “The growing integration of the Chinese economy into the world economy means that they will have a greater say. The financial architecture, which is based on Bretton Woods, and how the world was divided in 1945, does need to be updated.”
President Nicolas Sarkozy of France, which holds the EU presidency, called on Asia to support Europe at the US summit.
“Europe is going to present a united front and we will submit well-considered proposals developed together. Europe would like Asia to support that effort, so that together on November 15th we can tell the whole world that the causes of this unprecedented crisis will never arise again.”
Chinese president Hu Jintao said China’s economy was making a major contribution to international stability. “We have maintained relatively fast economic growth and steady development of the financial sector. The fundamentals of the Chinese economy have not changed.” On the other hand, he continued, the world financial crisis had increased the factors for instability in China’s economic development. “China is a developing country with 1.3 billion people, and the Chinese economy is increasingly interconnected with the global economy.
“China’s sound economic growth is in itself a major contribution to global financial stability and economic growth. That is why we must first and foremost run our own affairs well,” he added.
