Sarkozy, on a brief visit to Beijing, also told reporters Hu showed “definitive” confidence in the euro, and said Beijing had an “essential role” in France’s G20 agenda setting out a roadmap for addressing economic imbalances.
“China is concerned about the impact of the euro debt crisis, (and) hopes that the European economy can maintain stability, and that the countries concerned can achieve success in their financial reforms,” Hu told Sarkozy, according to Chinese television news.
“China has confidence in the European economy and the euro, and we are sure that Europe has the wisdom and ability to surmount its current hardships and maintain economic stability and growth,” said Hu.
“China will continue making Europe one of its principle investment markets, and we hope that Europe will take measures to ensure the security of Chinese investments there.”
With about a quarter of China’s record foreign currency reserves of more than $3 trillion held in euro assets, Beijing has been unsettled by the risks to the euro, even though Chinese leaders have repeatedly said they believe Europe can conquer its woes. Hu’s comments echoed that mixed message.
Along with Germany, France has resisted calls from other countries in the euro zone to expand the zone’s 440 billion euro bailout fund and introduce joint issuance of bonds by countries in the bloc as ways to address the crisis.
“First of all, the concerns of President Hu and of the Chinese leadership are of the same nature as those of all the leaders who regard the situation. He is neither more nor less worried,” Sarkozy told reporters in the Great Hall of the People, the cavernous ceremonial chamber in central Beijing where he met Hu.
“Second, Hu is not worried about the situation of the euro zone. Those of you who know China know that Hu has made a very definitive declaration about the confidence that he has in the euro zone and in the euro.”
Sarkozy came to Beijing with his own agenda of seeking China’s renewed support for France’s plans for the G20 summit of major developed and developing economies that it will host in November. He appeared to get what he came for.
“The G20 summit must be conclusive, must be decisive, and must take part in the revival of global growth. It’s a major task and China plays an essential role,” Sarkozy told Hu at the start of their talks, which reporters were allowed to hear briefly.
Discussing the G20 agenda, Hu said uncertainties and destabilising factors affecting the world’s economic recovery are on the rise, and the global economy faces “grim” challenges, according to the Chinese television report.
“Currently, destabilising factors and uncertainties affecting the world economic recovery are increasing,” Hu told Sarkozy, according to the report.
“China approves of the core topics for the summit,” Hu said, referring to the G20 leaders’ meeting in Cannes due to take place in November.
France will chair a meeting of G7 finance ministers in Marseille on Sept. 9-10 to discuss the global economy, followed by a gathering of G20 finance ministers in Paris in October.
Sarkozy has said before that Chinese backing is essential for France’s G20 goals, which include a roadmap for tackling economic imbalances and measures to reduce market speculation and commodity price volatility.
Sarkozy stopped briefly in Beijing on his way to France’s Pacific territory of New Caledonia. The French Finance Minister Francois Baroin, traveling with Sarkozy, is due to remain in China on Friday to discuss the G20 agenda.
Sarkozy told reporters that he and Hu also discussed the future of Libya, where rebel forces are poised to defeat Muammar Qaddafi. China, which voiced qualms about the NATO air campaign against Qaddafi’s forces, has said it wants the United Nations to play a leading role in post-war Libya.
“We believe that once the period of military intervention, under the control of the UN, is ended, we must absolutely re-build a unanimous vision among the international community and naturally China has a part of that,” Sarkozy told reporters.
Sarkozy, the first Western leader to recognize the rebels as Libya’s legitimate government, has invited world leaders to meet in Paris on Sept. 1 to discuss Libya’s reconstruction.
He said Hu would consider an invitation to attend “in a welcoming spirit.”
