Expressing alarm at Europe’s debt problems, Chinese Premier Wen Jiabao (溫家寶) called on Greece, Spain and Italy to embrace budget cuts and get their finances in order after meeting yesterday with visiting German Chancellor Angela Merkel. Wen said Beijing is willing to keep buying European bonds, but gave no sign Beijing will bail out the eurozone.
Merkel was in Beijing for talks aimed at boosting trade and allaying Chinese fears about Europe’s heavy government debts. China has a stake in a resolution because Europe is its biggest export market and Beijing holds billions in European bonds.
Europe’s downturn has battered China’s exporters, wiping out thousands of manufacturing jobs. Exports to Italy last month plunged 26 percent from a year earlier, while those to even relatively strong Germany were down 6.5 percent. Exports to France fell 8 percent.
“The European debt crisis has continued to worsen, giving rise to serious concerns in the international community. Frankly speaking, I am also worried,” Wen told reporters.
He cited uncertainty over a Greek eurozone exit and whether Italy and Spain will take “comprehensive rescue measures.”
“Resolving these two problems rests with whether Greece, Spain, Italy and other countries have the determination for reform,” the premier said.
Wen said Beijing was willing to buy European bonds so long as it could evaluate the risks and to help the EU, IMF and European Central Bank support indebted eurozone countries “in overcoming hardships.”
Wen made a similar pledge of possible Chinese aid to European bailout funds during Merkel’s last visit to Beijing in February, but it is unclear what it has done. The European Financial Stability Fund, set up to lend to troubled governments, says China and other Asian investors have bought 40 percent of its bonds, but has given no details.
Ahead of Merkel’s visit, German officials told media Berlin wanted to reassure Beijing that European debt is a “safe and good investment.”
Later, Wen and Merkel presided at a signing ceremony for billions of US dollars in business deals such as Airbus Industrie committing to invest US$1.6 billion in the second phase of an aircraft final assembly plant in Tianjin. A Chinese state company signed an agreement to purchase 50 Airbus jetliners valued at US$3.5 billion.
Officials of the two governments also signed agreements to collaborate in biotechnology, electric vehicles, agriculture, education, labor and the environment.
Germany is China’s biggest EU trading partner and one of the few developed economies with which it runs a trade deficit.
The government is aiming to recruit 1,096 foreign English teachers and teaching assistants this year, the Ministry of Education said yesterday. The foreign teachers would work closely with elementary and junior-high instructors to create and teach courses, ministry official Tsai Yi-ching (蔡宜靜) said. Together, they would create an immersive language environment, helping to motivate students while enhancing the skills of local teachers, she said. The ministry has since 2021 been recruiting foreign teachers through the Taiwan Foreign English Teacher Program, which offers placement, salary, housing and other benefits to eligible foreign teachers. Two centers serving northern and southern Taiwan assist in recruiting and training
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