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Chinese PM Wen Jiabao talks up euro ahead of UK summit Chinese PM Wen Jiabao supports euro ahead of UK summit
(about 4 hours later)
China's Prime Minister Wen Jiabao has been talking up the euro ahead of a three-day business summit in Britain. China's Prime Minister Wen Jiabao has said his country will support the euro, ahead of a three-day summit in Britain.
Mr Wen said China had increased its holdings of euro bonds in recent years and was confident the eurozone could overcome its problems. Before arriving, Mr Wen said China had increased its holdings of euro bonds in recent years and was confident the eurozone could overcome its problems.
Mr Wen is due to attend the UK-China Strategic Summit and meet Prime Minister David Cameron. Mr Wen is due to visit the Chinese-owned MG car plant at Longbridge, near Birmingham, and watch a Shakespeare performance in Stratford-upon-Avon.
He will also visit the Chinese-owned MG car plant at Longbridge, near Birmingham. On Monday he will attend the UK-China Strategic Summit and meet the UK PM.
The plant used to make MG Rover cars but is now owned by the Shanghai Automotive Industry Corporation. Business deals are expected to be announced at the annual UK-China Summit, which will involve David Cameron, Foreign Secretary William Hague and Chancellor George Osborne.
Mr Wen will attend the launch of the MG6 Magnette, which is designed in Britain but assembled from parts manufactured in China. Mr Wen will also hold talks with Deputy Prime Minister Nick Clegg and business leaders, before leaving for Germany on Monday.
He is also due to visit Stratford-upon-Avon and watch a short performance of Shakespeare's work.
Debt crisisDebt crisis
Mr Wen flew into Birmingham airport on Saturday night from Hungary, where he was asked about the debt crising in Europe, and especially the situation in Greece. On Sunday, Mr Wen will attend the launch of the MG6 Magnette, which is designed in Britain but assembled from parts manufactured in China.
Mr Wen said that he was bringing trust at a time when the Europe's debt crisis was expanding. The Longbridge plant used to make MG Rover cars but is now owned by the Shanghai Automotive Industry Corporation.
China has foreign reserves of around $3tn and is believed to be diversifying some of its holdings from US dollars into euros and other currencies. He is also due to visit Stratford-upon-Avon and watch a short performance of Shakespeare's work on Sunday. The leader is said to be a life-long Shakespeare fan.
Mr Wen flew into Birmingham airport on Saturday night, and was met by Trade Minister Stephen Green and Britain's ambassador to Beijing Sebastian Wood, the Foreign Office said.
He had come from Hungary, where he was asked about the debt crisis in Europe, and especially the situation in Greece.
"China will consistently support Europe and the euro," Mr Wen said.
"Europe's debt crisis is expanding. Trust is more important than currency and gold and now, during the debt crisis, we again bring trust to Europe.
"I have total trust in Europe's economic development," he added.
Human rights concerns
China has foreign reserves of about $3tn and is believed to be diversifying some of its holdings from US dollars into euros and other currencies.
While economic, commercial and political ties are the focus of the visit, Britain remains concerned about China's human rights record and the issue is expected to be raised in talks, says the BBC's Adam Mynott.
Last week dissident artist Ai Weiwei was released from custody in China, heading off protests which might have greeted Mr Wen's visit to Britain.Last week dissident artist Ai Weiwei was released from custody in China, heading off protests which might have greeted Mr Wen's visit to Britain.
On Saturday news broke that another prominent Chinese dissident, Hu Jia, had been released from prison and reunited with his family.On Saturday news broke that another prominent Chinese dissident, Hu Jia, had been released from prison and reunited with his family.
He had campaigned for the environment and in support of patients with Aids.He had campaigned for the environment and in support of patients with Aids.
But the Free Tibet pressure group has promised to hold demonstrations outside Downing Street when Mr Wen goes to meet Mr Cameron.But the Free Tibet pressure group has promised to hold demonstrations outside Downing Street when Mr Wen goes to meet Mr Cameron.
The UK-China Strategic Summit is an annual meeting - the last one took place in Beijing in November last year.
Bidding for work
With China having overtaken Japan as the world's second largest economy, many European companies are looking for investment, while Chinese acquisitions in Europe have also been increasing.With China having overtaken Japan as the world's second largest economy, many European companies are looking for investment, while Chinese acquisitions in Europe have also been increasing.
Mr Wen is thought to be leading a Chinese bid for work on the HS2 high-speed rail line between London and Birmingham.Mr Wen is thought to be leading a Chinese bid for work on the HS2 high-speed rail line between London and Birmingham.
Chinese ambassador Liu Xiaoming said last week China was looking for "flagship projects" and had "the knowledge, expertise and experience" to assist with HS2.Chinese ambassador Liu Xiaoming said last week China was looking for "flagship projects" and had "the knowledge, expertise and experience" to assist with HS2.
Earlier this month, Chinese PC maker Lenovo agreed to buy German electronics retailer Medion in a bid to boost its market share in Europe.