Free-trade promise made by Asian and European leaders

Leaders in Asia and Europe have said that China’s economy is critical to the global economic recovery – and have pledged to promote international free trade.

More than 50 countries attended the Asia-Europe Meeting held in Bangkok at the start of November. European leaders from France, Italy and Russia attended, along with representatives from China, Japan and Indonesia.

A main concern was that Europe needs to recover from its deep recession and move towards sustainable and balanced growth.

China

Experts say the meeting was marked by China’s increased role as a source of trade and investment for beleaguered European economies.

Chinese Premier Wen Jiabao, who is hopeful for a new partnership between Asia and Europe, has said that he is confident in China’s outlook. However, he has called for free, open and fair international trade, and a robust system of global economic governance.

Malaysia Prime Minister Najib Razakh said the hope in Europe is that China will rebalance its economy.

He said. “I think there is a general feeling amongst European countries that there is a need for China to rebalance its economy. Less emphasis on export, but to provide more domestic demand. I think there is a gentle hint about the need to rebalance its economy.”

IMF

Australia Prime Minister Julia Gillard recognises that China is ready to play a bigger role on the global economy platform, including through the IMF. She said: “I think there is a role for China to play in the global efforts to enhance growth and jobs, and China has been involved in those discussions at the G20 table.

“It has been involved in, and active on, issues like IMF resourcing. So what further it chooses to do, obviously I will leave to the leaders of China to speak about.”