Amid uncertainty about the fate of its over
$1.16 trillion holdings in downgraded US treasury bills, China has evinced interest in
buying Italian bonds to help Rome ease its debt crisis.
A strong indication of China's support came from Chinese Prime Minister Wen Jiabao on Wednesday, when he said China is willing to help debt-laden Europe by increasing its investment.
"We have been concerned about the difficulties faced by the
European economy for a long time and we have repeated our willingness to extend a helping hand and increase our investment," Wen said in his address at the inauguration of the World Economic Forum's annual meeting at the Chinese city of Dalian.
In return, Wen asked the European Union (EU) to acknowledge China's status as a market economy and hoped EU leaders would look at Sino-EU relations from a bold and strategic perspective.
"Based on the WTO rules,
China's full market economy status will be recognised by 2016. If EU nations can demonstrate their sincerity several years earlier, it would reflect our friendship," he said.
Wen added that he hopes his scheduled meeting with EU leaders next month will lead to a breakthrough in this regard.
His comments came as Chinese media reported that Beijing is interested in buying Italian debt.
"We support European countries' efforts to handle the debt crisis and believe they will enhance coordination and take collective measures to properly address related issues," Ministry of Foreign Affairs spokeswoman Jiang Yu had told reporters on Tuesday.
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