September 14th, 2011
09:17 AM GMT
(CNN) – As China once again is getting calls to bail out a European nation, Chinese Premier Wen Jiabao told a group of business leaders that “countries must first put their own house in order.”
While “willing to extend a helping hand,” China is working on its own woes with inflation and structural reforms, Wen told the audience at the World Economic Forum in Dalian, China, on Wednesday. “Developed countries must take responsible fiscal and monetary policies. What is most important now is to prevent the further spread of the sovereign debt crisis in Europe,” said Wen, according to Bloomberg.
His comments come after reports that Rome is in talks with Beijing to buy Italian debt bonds and invest in some key Italian companies. That report sent stocks higher Tuesday, as the equity markets continued a roller-coaster ride over fears that a Greek default is imminent, sparking a debt contagion as investors lose appetite to buy other European bonds.
Wen said China was willing to invest more in Europe, but EU nations should recognize China’s status as a market economy, Dow Jones reported.
"Unemployment rates in the major economies continue to be high, and emerging economies face rising inflationary pressures," Wen said. "All this shows that the global economic recovery will take a long time and be arduous and complex."
While worried about containing debt problems in Europe, Wen also signaled his belief the U.S. economy will recover. "However, we hope the U.S. will implement sound economic policies and ensure fiscal and financial stability to protect investors' interest and maintain confidence."
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