Premier Wen Jiabao yesterday spelled out China's demands for helping the US and Europe overcome their financial and economic difficulties in remarks seen as a shift in China's attitude towards the developed economies. Speaking to 1,500 delegates at the opening of the annual World Economic Forum event in Dalian, Wen delivered a message that was both polite and clear. While the US and Europe could count on China's continued financial support, China also had 'hopes' from them, he said. 'Countries must first put their own houses in order,' Wen said. '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.' Wen's biggest hope for Europe, which is struggling with a growing debt crisis, was recognition of China at the World Trade Organisation as a full market economy. This has been a long-standing demand of Beijing since China was admitted to the WTO in 2001, with the body setting 2016 as a deadline for members to recognise China as a market economy. Recognition would help Chinese exporters avoid trade disputes, such as accusations of dumping, but the European Union countries and the United States have yet to extend this. Wen said granting that status to China a few years ahead of the 2016 deadline 'would be a sign of friendship and sincerity' and that he hoped to see a breakthrough in this area during a visit to Europe which is scheduled for next month. For the US, Wen hoped Washington would open up its market to Chinese investment so that US debts to China could be converted into investment and create jobs. The premier also said the US should lift its restrictions on exports to China to help balance bilateral trade. He also called on the Americans to hold up the bottom line for external debts, cut budget deficits and create jobs. Wen said he had made these 'suggestions' to President Barack Obama during their meeting last year, while telling him that China was willing to expand financial and economic cooperation with the US. Wen's demands reflect long-held Chinese policy, but many observers in his audience said they had sensed a change in attitude. Charles Rustein, chief operation officer from Boston-based Forrester Research, said Wen's tone was 'really confident'. Rustein said China's demands were understandable because, as Wen pointed out, 'all parts of the world are intertwined and connected'. Adam Bly, another delegate, said Wen's change of tone was evidence of Beijing's growing economic strength. 'Now it's like [China] saying to us that things are not going to be done in the old ways, [that] 'you have to realise we also have our little strings attached'.' Wen yesterday said he 'expects to see positive efforts' from the US government regarding lifting restrictions on exports to China. 'As the largest developed country in the world, the US has strong enough economic potential, solid enough scientific and technological base, and rich enough resource of talents to achieve its economy's all-round recovery,' said Wen. 'We believe in its ability to overcome its difficulties. We only hope that the country can follow a correct economic policy, so as to stabilise its fiscal and monetary policies and boost investors' confidence.' He described Europe as China's 'full strategic partner' and said Beijing was concerned about the euro zone's economic problems. 'For quite a few times, China has offered its help by increasing our investment in Europe,' Wen said without giving examples. 'Up to now, we still believe Europe can pull through its current difficulty and we are still ready to expand our investment there,' he said. 'But China also hopes that European leaders will muster the courage to appreciate the strategic importance of the Sino-European relationship, such as recognising China's status as a fully fledged market economy,' he said. In Europe, stocks rose for a second day, on speculation that China may offer support. Wen also mentioned Japan, reminding Tokyo that China had offered help without hesitation after its earthquake and tsunami in March.
