China: We'll spend billions to prop up the stricken euro

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China has vowed to increase its support of the eurozone after pledging to spend billions of pounds propping up the single currency.





Premier Wen Jiabao said it will keep buying government bonds – the debts of stricken European nations.




In a boost for Greece ahead of a pivotal vote on greater austerity cuts tomorrow, Mr Wen said Europe could count on his ‘unremitting’ support



Support: Chinese Premier Wen Jiabao

The turmoil engulfing the region has not diminished China’s desire to buy up more European debt. China has foreign reserves of around £2trillion and is the largest creditor to the United States.




At the start of a three-day visit to Britain yesterday, Mr Wen said: ‘China is a long-term investor in Europe’s sovereign debt market. In recent years, we have increased by quite a big margin our holdings of government bonds. We will consistently continue to support Europe and the euro.’




Mr Wen, who will meet Prime Minister David Cameron today, flew into Birmingham Airport for a trip intended to boost China’s commercial, economic and political links with Britain

 

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As a lover of Shakespeare’s plays, the Chinese leader started with a tour of the house where the playwright was born in Stratford-upon-Avon.


Whilst in Stratford-upon-Avon, the Chinese leader visited the house (above) where Shakespeare was born in 1564

The premier arrives at Shakespeare's birthplace in Stratford-upon-Avon, Warwickshire

Mr Wen greets Culture Secretary Jeremy Hunt and his family

 

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Mr Wen also visited the MG car plant at Longbridge, which is owned by China’s Shanghai Automotive Industry Corporation.


The Chinese premier was delighted to get behind the wheel of the new MG6

 

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Protesters practice Falun Gong exercises outside the MG motor plant in Birmingham

 

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Mr Wen is in Britain to discuss trade and investment links. China is the UK's second biggest trading partner outside the EU, with business worth £31bn a year.

With its own manufacturing increasingly outsourced to cheaper labour markets like Vietnam, China is keen to establish a business foothold in Europe, particularly by investing in established brands.



Culture Secretary Jeremy Hunt, whose wife is Chinese and who accompanied Mr Wen on his visit, said China was a huge untapped resource for UK tourism.

"We already have 150,000 Chinese visiting the UK every year - I believe that's the tip of the iceberg," he explained.

"When you look at what places like Stratford have to offer we think we can double, even treble over the next few years."

 

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