Monday February 2, 11:47 AM
Chinese PM says world all 'in same boat' over economy
By Michael Thurston
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LONDON (AFP) - Chinese Premier Wen Jiabao vowed Monday urgent and coordinated action to avert a global economic "disaster," saying the world is all "in the same boat," as he neared the end of a five-nation European trip.
Holding talks with British Prime Minister Gordon Brown in London, Wen underlined the need for confidence as much as specific measures to deal with the international slowdown.
"This financial crisis is a global one. No single country can remain immune and address this in isolation. We are sitting in the same boat and we need to all work together to overcome the difficulties," he said.
Lamenting that in the world of high finance had "been using excessive leverage to pursue exorbitant profit," he added: "When bubbles burst, the world is exposed to disaster."
"Such hard lessons need to be learned. From this moment on we need to enhance transparency of financial regulations."
He urged swift action to address the situation.
Wen's first trip to Britain since 2006 marks the end of a high-profile visit to Europe that has taken him to Germany, Spain, the EU headquarters in Brussels and the World Economic Forum at Davos, Switzerland.
As the pair met, around 50 pro-Tibetan and some 100 pro-Chinese demonstrators gathered outside Brown's Downing Street office for rival protests, watched by a heavy police presence.
Five people were arrested after demonstrations Sunday.
As well as boosting trade ties, Wen's trip also aims to mend relations strained over the Dalai Lama, Tibet's exiled spiritual leader who Beijing accuses of trying to seek independence from Chinese rule.
Brown has stressed the importance of Britain's relationship with China, although human rights activists have warned against getting too close.
Among the items being discussed by Brown and Wen Monday was the meeting in London later this year of the Group of 20 major industrialised and emerging powers.
The April summit will be dominated by the financial crisis and Brown has argued that Beijing's increasing power -- it is now the third-biggest economy in the world -- makes it a "vital" partner in restoring economic stability.
In a strategy document published last week, his government made Britain's relationship with China a top priority, saying its rise was "one of the most significant developments of our time."
Brown has argued for an international approach to the financial crisis and in Davos, Wen also backed the British leader's call for greater cooperation and against a retreat into protectionism in response to the downturn.
But Wen was outspoken about the role of western nations in the crisis, blaming "inappropriate macroeconomic policies of some economies" and "prolonged low savings and high consumption" in a lightly veiled attack on Washington.
He also said rich countries must "assume their responsibilities" and minimise the impact of the crisis on developing nations, saying it had "fully exposed the deficiencies in the existing international financial system."
In an interview with the Financial Times Monday, he played down hopes in London that China would help bolster global institutions to meet the challenge.
Brown has pressed China and the Gulf states to contribute more to global bodies like the International Monetary Fund, but Wen signalled that China was still growing and needed its reserves for itself.
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