ASEM summit opens in Chinese capital; Singh among attendees By Anil K Joseph

Beijing, Oct 24 (PTI) Leaders from 45 Asian and European
nations, including Prime Minister Manmohan Singh, Friday
kicked off a summit here to explore ways to restore confidence
in global financial markets and avert a possible recession.

Chinese Premier Wen Jiabao presided over the opening
ceremony of the biennial Asia-Europe Meeting (ASEM) held at
the Great Hall of the People here.

Wen welcomed six new members of ASEM -- Bulgaria, India,
Mongolia, Pakistan, Romania and the Secretariat of the
Association of Southeast Asian Nations (A.S.E.A.N.).

Singh, who arrived here Thursday after a three-day visit
to Japan, and Wen warmly shook hands and posed for
photographers.

Chinese President Hu Jintao, in his key-note speech,
emphasised that the world can overcome the current crisis
through concerted efforts.

"Only with strong confidence and concerted efforts can
we weather the crisis," Hu said, referring to the ongoing
financial crisis triggered by the U.S. credit crunch.

Hu, also General Secretary of the ruling Communist
Party of China, said Beijing appreciated and supported the
positive measures taken by several countries in response to
the financial crisis. "We hope those measures will produce the
desired results soon."

On China's part, Hu said the country had made active
efforts to the best of its ability.

"We have adopted a range of important measures, including
those on maintaining the stability of our domestic financial
system, increasing liquidity in the financial markets and
institutions, enhancing coordination and cooperation with
other countries on macro-economic policies among others."

Hu said China's sound economic growth is in itself a
major contribution to global financial stability and economic
growth.

"We have maintained relatively fast economic growth and
steady development of the financial sector. The fundamentals
of the Chinese economy have not changed," Hu said.

However, on the other hand, he said the global financial
crisis had noticeably increased the uncertainties and factors
for instability in China's economic development. "China is now
confronted with many difficulties and challenges in our
economic endeavour."

"China is a developing country with 1.3 billion people,
and the Chinese economy is increasingly inter-connected with
the global economy. China's sound economic growth is in itself
a major contribution to global financial stability and
economic growth. That is why we must first and foremost run
our own affairs well," Hu said.

He said, in the light of the changing domestic and
international economic situation, China would make its
macro-economic regulation measures more proactive, focussed
and effective, and make timely adjustments to the policies.

China would vigorously expand domestic demand, especially
consumer demand, maintain economic and financial stability
while continuing to promote sound and fast economic and social
development, he said.

"In response to the new requirements of the times, Asia
and Europe should make better use of this platform to increase
dialogue, expand consensus, enhance trust and deepen
cooperation," Hu said.

Apart from Singh, other attendees at the summit include
French President Nicholas Sarkozy, German Chancellor Angela
Merkel, Japanese Prime Minister Taro Aso and European
Commission President Jose Manuel Barroso.

Hu urged Asian and European countries to respect each
other's social system, ideology, cultural background and
development model and better appreciate each other's
development policies and goals.

"We should embrace an open attitude and make full use
of our strong economic complementarities to deepen existing
cooperation, develop new areas of cooperation and properly
handle economic and trade frictions through dialogue and
consultations on an equal footing," he said.

He suggested Asia and Europe intensify coordination and
cooperation to jointly meet global challenges, promote
stability in the international energy and food markets and
strengthen cooperation in disaster prevention and reduction.

Asia and Europe should also actively respond to climate
change, work for the attainment of the U.N. Millennium
Development Goals, promote multilateralism and the proper
settlement of international and regional hot-spot issues, and
advance peace and development of the world, Hu said.

The two sides should carry forward the spirit of
equality, openness and inclusiveness, advocate the harmonious
co-existence and mutual learning among civilisations and work
together for prosperity and progress of human civilisation,
the Chinese President added.

"It is an integral part of China's foreign policy to
strengthen and grow friendly relations and cooperation with
countries in Asia and Europe," Hu said.

The ASEM now includes 45 members and represents more
than 50 percent of the world's gross domestic product
(G.D.P.).

The European side is represented by 27 European Union
nations and the European Commission. The Asian members count
10 countries of the Association of Southeast Asian Nations
(A.S.E.A.N.) plus China, Japan, South Korea, India, Pakistan,
Mongolia and the A.S.E.A.N. Secretariat.

With the world preoccupied with the financial turmoil,
the two-day summit will also draw the leaders' attention to
other topics of energy, climate change, food security and
sustainable development.

Four plenary sessions are scheduled to be held during
the two-day summit.

China is expected to put forward a proposal on building
an eco-city network in Asia, while France, which holds the
rotating European Union presidency, would present a statement
on climate change.

The summit also offered host China an opportunity to
boost relations with other ASEM members as the country's top
leadership was engaged in intensive one-on-one meetings on
the sidelines of the major gathering of Asian and European
leaders. PTI AKJ
DEP