You're reading: China’s Hu says Europe able to solve economic woes

VIENNA - China thinks its strategic partner Europe has the capacity to overcome its economic problems, President Hu Jintao said on Monday.

He gave no indication whether Beijing could play a major role in helping solve the euro zone’s debt crisis.

"We are following the economic development under the current difficulties with attention," he told reporters through a German translator after meeting Austrian counterpart Heinz Fischer on a state visit.

"We are convinced that Europe has the wisdom and has the competence to overcome the current difficulties," added Hu, who will attend a summit of Group of 20 leading economies in France later this week.

Hu said economic uncertainties were of importance for the international community, especially for big economies, and that it was key to foster growth, stability and greater cooperation.

Cash-rich China has already expressed confidence Europe can survive its debt crisis but has made no public offer to buy more European government debt while it awaits details on investment options for the European Financial Stability Facility (EFSF) euro zone rescue fund.

State-run news agency Xinhua said in a commentary on Sunday that Europe should not expect China to ride to the rescue as its "saviour" from the debt crisis although Beijing would do what it can to help a friend in need. .

EFSF head Klaus Regling had sought at the weekend to entice China to invest in the facility by saying investors may be protected against initial losses and that bonds could eventually be sold in yuan if Beijing desires.

Regling declined to comment on his meetings in Beijing but said he expected to submit a proposal on how to scale up the 440-billion-euro ($623.7 billion) EFSF fund by November.

Expanding the EFSF to 1 trillion euros is key to the euro zone’s latest anti-crisis plan, put together at a Euro zone summit last week. Details on this have yet to emerge and European leaders are under pressure to show the plan can work.

Regling was visiting China after euro zone leaders struck the deal to boost the firepower of the EFSF, recapitalise banks and reduce Greece’s crippling debt burden.

Japan told Regling on Monday that it would continue to buy EFSF bonds, but, like China, did not commit to putting cash into a mooted special purpose vehicle to enhance the rescue fund’s firepower.