Summer Davos: Premier Wen Confident about Global Recovery

Chinese Premier Wen Jiabao has expressed his confidence in the state of the global economy as Europe struggles with a debt crisis and Washington tries to revive America's sluggish growth.

Su Yi has more.

The Chinese Premier made the comments on the opening day of the Annual Meeting of the New Economic Champions, also known as the Summer Davos, in the Chinese port city of Dalian.

"China will adhere to a strategy of expanding domestic consumption, focusing on adjusting and optimizing the demand structure and increasing the momentum triggered by consumption."

He vows to keep a tight lid on the country's inflation, following a drop in the consumer price index from a three-year high of 6.5 percent in July to 6.2 percent in August.

While the major world economies are looking to China, which rebounded quickly from the 2008 global financial crisis, Premier Wen says he is confident that the US and Europe will recover from their current economic problems.
But he also says major developed economies should adopt "responsible and effective" policies.

"The governments of all the countries must truly take responsibility and take care of their own affairs. The main developed countries must make responsible and effective fiscal policies to properly cope with the sovereign debt issues."

Amid the emerging sovereign debt crisis in Italy and Greece, Wen says China is willing to invest more in European countries.

He is scheduled to meet with European leaders next month on economic issues.

Earlier this week, the Italian government confirmed its finance minister met with officials from China's sovereign wealth fund, the China Investment Corporation. There is an increasing speculation that Rome is hoping Beijing will buy its debts or invest in its companies.

Meanwhile, Wen is calling for European countries to recognize China as a market economy. A full market economy status will help remove certain restrictions in export and investment to China.

The European Union is now China's biggest trading partner, while China is the EU's second largest. Earlier this year, Premier Wen Jiabao pledged to double China's trade volume with Britain and Germany over the next five years.

For CRI, I'm Su Yi.