China's President Hu expresses confidence in Europe

BEIJING, Aug. 26 (UPI) -- Chinese President Hu Jintao told French President Nicolas Sarkozy Beijing remains confident about the economy of Europe, where China has large investments.

Sarkozy, who stopped in Beijing for 5 hours Thursday before flying to France's Pacific territory of New Caledonia, was assured by Hu that China is confident Europe will overcome its current financial crisis, China Daily reported Friday. However, Hu called for Europe to take measures to protect Chinese investments.

"China has confidence in the European economy and the euro, and we are sure that Europe has the wisdom and ability to surmount its current hardships and maintain economic stability and growth," Hu said.

Europe has become China's largest trading partner. A quarter of China's foreign currency reserves of more than $3 trillion are currently in Euro assets.

"China will continue making Europe one of its principal investment markets, and we hope that Europe will take measures to ensure the security of Chinese investments there," Hu said.

Sarkozy was quoted as saying China has an "essential role" to play in efforts to boost the global economy at the next G20 meeting in November.

"As president of the G20, I never imagined not coming to China to talk to my Chinese friends about the major economic issues that are preoccupying the world," the French leader said.

China's Commerce Ministry has said China has been buying bonds from Spain and other European nations in the past two years of the European debt crisis.