Sarkozy to seek Asian economic backing at regional summit

CHINA: Leaders from Asia and Europe will gather in Beijing Friday for two days of talks in which French President Nicolas Sarkozy will seek Asian backing for his bid to rebuild the world’s financial system.

The global economic woes are set to dominate the Asia Europe Meeting (ASEM), a summit of 43 nations held every two years, with the forum offering the first opportunity for Asian countries to discuss the financial crisis as a group.

Sarkozy, whose country holds the rotating presidency of the European Union, has made it clear he will use the event to press Asian nations for support in a dramatic restructuring of the global financial system.

Sarkozy said on Tuesday his objective for the forum was “to convince the Asian powers to take part in this (financial) rebuilding.”

The French president is particularly looking to China and India, who he wants to join a series of global summits beginning in the United States next month that are likely to see his bolder plans meet resistance from Washington.

India has said it will participate in the summits, and China is expected to announce its decision shortly after giving repeated assurances it wants to contribute to helping the world out of its economic mess.

Sarkozy has called for an overhaul of the Bretton Woods system that has governed international finance since the end of World War II, and launch a new system.

US President George W. Bush, meanwhile, has stressed the importance of preserving “the foundations of democratic capitalism the commitment to free markets, free enterprise and free trade.”

Officials have said climate change, energy and food security will also be on the agenda during the ASEM meeting, which is the biggest international event in China since the Beijing Olympics in August. ASEM will further offer leaders the chance to discuss the North Korean and Iranian nuclear issues, but officials have made it clear the worst financial crisis since the Great Depression of the 1930s will be the top priority.

Most of Europe’s and Asia’s leaders except British Prime Minister Gordon Brown will attend, with many of them set to hold a flurry of bilateral meetings and other smaller encounters.

China is also reportedly seeking to organise a meeting with the leaders of the 10 Association of Southeast Asian nations, Japan and South Korea to discuss the financial crisis among themselves. The forum is unique as it gives the leaders a chance to meet among themselves without aides and other officials.

ASEM was set up in 1996 as a potential counter for Europe to strong US influence in Asia, and has focused on sharing ideas rather than binding agreements.

ASEM nations account for roughly 60 percent of the world’s gross domestic product and, in the build-up to this week’s forum, European officials have sought to highlight the common concerns between Asia and Europe.

BEIJING, Wednesday, AFP