China's Premier Wen Jiabao said Tuesday Beijing stood ready to increase "its participation in resolving the EU debt problems" after holding talks with European Union leaders.

Wen, who was speaking at an annual EU-China summit, also said China was "full of confidence in its own future" and hoped to see Europe "maintain stability and prosperity."

He did not elaborate on how China would participate in helping resolve the debt crisis in Europe, but earlier this month he said Beijing was considering offering help through the International Monetary Fund or bail-out funds.

The summit in Beijing comes as China grows increasingly concerned over the situation in Europe, its biggest export market, repeatedly urging EU leaders to get a grip on the situation.

EU officials have in return sought to reassure their Chinese counterparts, saying they have taken drastic measures that will help resolve the crisis - comments reiterated Tuesday by EU Commission president Jose Manuel Barroso.

"Our message from the EU side is Europe is doing what it takes and will continue to do what it takes to restore confidence," he told reporters at the joint news conference.

But in a sign the crisis is far from over, ratings agency Moody's on Monday downgraded Italy, Spain and Portugal and warned France, Britain and Austria were increasingly vulnerable.

channelnewsasia.com