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China's Wen in Britain as world seeks crisis fix

By Daisy Ku | Reuters

Chinese Prime Minister Wen Jiabao waves at onlookers after his visit to Madrid’s Instituto Cervantes, 31 January 2009.Reuters/Andrea Comas/Spain

Chinese Premier Wen Jiabao arrived in London on Saturday in the latest leg of a European tour aimed at tackling the global financial and economic crisis and improving relations between the trading partners.

Wen will hold talks with British Prime Minister Gordon Brown during the three-day visit as global policymakers seek to build a consensus ahead of the G20 crisis summit of leading developed and developing nations in London on 2 April.

“I hope this message will serve as a new opportunity to deepen friendships between our two peoples and promote vibrant growth of our relations,” Wen said on his arrival.

Relations between China and Europe — particularly France — have been strained over the issue of Tibet and its exiled Buddhist leader the Dalai Lama, who Beijing regards as a dangerous separatist for advocating Tibetan autonomy.

Free Tibet campaigners have planned several demonstrations to coincide with Wen’s trip.

“China and the United Kingdom, two countries with major influence in the world, have broad common interests and a noble common mission in maintaining world peace, promoting common development, tackling the global financial crisis,” Wen said.

Brown wants cash-rich nations like China to help bolster the International Monetary Fund’s capacity to help struggling economies through the downturn and will also be keen to push for further action by the Chinese government to boost its economy.

Wen said in Berlin on Thursday he wanted to improve his government’s 4 trillion yuan ($585 billion) stimulus package.

A discussion over currencies and economic and trade imbalances is also likely to feature, given concerns expressed by the new United States administration this month that China is depressing the value of the yuan to support its exports.

China’s cooperation will also be crucial in securing any meaningful world trade agreement this year — a key aim for Brown as he seeks a successful G20 summit in London in a difficult run-in to the next British election, due by May 2010.

Economic activity in China, the world’s third biggest economy, is slowing sharply as the financial crisis hits demand in its main export markets such as the United States and Europe.

Sterling has also taken a tumble this month as Britain’s economy contracts quickly. The pound’s decline has sparked criticism from Europe — Britain’s main trading partner.

But Brown has warned against protectionism, arguing that global imbalances must be addressed to achieve a more stable future for the world economy.

Copyright © 2009 Reuters

Published in Reuters website