Speaking to reporters in Lima, Bob Buckle, chairman of the economic committee of the 21-nation Asia-Pacific Economic Cooperation, said a steady and robust economy in China and India is vital as the two Asian giants have been "a crucial engine of growth," for the world economy, Xinhua reported.

Their continued progress would help restore market confidence in the current climate, Buckle said. The APEC meeting began this week in the Peruvian capital in preparation for the summit opening Saturday.

China, and to a lesser extent India, have enjoyed extraordinary growth in recent years, far higher than most other countries of the world.

Buckle, citing the robust growth in emerging countries, was quoted as expressing confidence the current crisis will not lead to a catastrophic situation as happened during the 1930s Great Depression.

At the same time, he stressed the need for reform in economic policies so governments can cushion against market shocks.

The summit will mainly explain the importance of competition policies as part of APEC structural reforms, Xinhua said.

APEC was set up in 1989 and it includes Australia, Brunei, Canada, Chile, China, Hong Kong, Taiwan, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, the Philippines, Russia, Singapore, South Korea, Thailand, the United States and Vietnam.