CHINA:CHINA IS prepared to help the euro zone tackle its debt crisis, with some strings attached, Premier Wen Jiabao said yesterday. However, Beijing insisted Europe and the US needed to get a grip on their economic woes.

“Governments should fulfil their responsibilities and put their own house in order,” Mr Wen told the World Economic Forum in the eastern city of Dalian.

While the overall tone remains supportive, there is a growing sense that China is not terribly comfortable with the role of “go-to” economy to prop up ailing European countries.

Western governments have been quick to look to the world’s second largest economy for investment as Europe struggles with a debt crisis and Washington tries to resuscitate sluggish growth. This week Rome sent its finance minister to meet officials from China’s sovereign wealth fund to discuss ways for Beijing to help Italy out of its debt morass by buying bonds or investing in state assets.

“We have been concerned about the difficulties faced by the European economy for a long time, and we have repeated our willingness to extend a helping hand and increase our investment,” Mr Wen said. He had reassured European Commission president Jose Barroso of this in a recent telephone conversation.

Mr Wen suggested China’s help would not come without conditions, and that he wanted Europe to take “bold steps”, including overcoming its traditional resistance and officially declaring China to be a free-market economy.

Full market economy status has long impeded deeper relations between the EU and China. It is basically a technical term which would allow the removal of certain restrictions to Chinese exports and investments in Europe.