China's premier offers Europe investment, help on Greece

By Robin Emmott

BRUSSELS (Reuters) - China promised on Monday to invest in the EU's new infrastructure fund, offered support on the Greek debt crisis and called for a global climate deal, as Beijing seeks a greater role on the world stage.

Premier Li Keqiang, in Europe on a day when financial markets took fright that Greece might leave the euro, told European business leaders he wanted to see Athens remain in the currency area and would continue to buy euro zone debt.

Holding his first summit with the new head of the European Commission, Jean-Claude Juncker, and of the European Council of EU leaders, Donald Tusk, Li said China was ready to invest.

"China's decision to participate is a grand one," Li said of the EU's new 315 billion-euro infrastructure fund, although he declined to say how much Beijing would spend.

"China has ample foreign exchange reserves," he said, suggesting the creation of an additional joint EU-China investment fund.

The pledges mark the latest step in China's efforts to shape global economic governance and follow decisions by EU governments to join the Chinese-led Asian Infrastructure Investment Bank (AIIB) in defiance of Washington.

The Greek crisis, after bailout talks broke down at the weekend, overshadowed a summit meant to focus on climate change and improving political ties.

European Commission President Jean-Claude Juncker arrived late for the business conference where he shared the podium with Li, saying: "Don't blame me, blame Greece."

CLIMATE DEAL

Li, essentially the man in charge of China's economy, the world's second largest, said China wanted a strong euro zone.

"It is in China's interest. We would like to see Greece staying in the euro zone and we urge the international creditors to reach an agreement with the Greek side," he said.

The European Union is pushing for a new global deal on climate change at U.N. talks later this year, hosted by France.

Li said Beijing would soon make a joint announcement with the EU.

"The two sides must step up their cooperation ... to establish a fair, reasonable, win-win global climate governance system," Li said.

    Beijing had said it would submit its plans for emissions reduction to the United Nations in the first half of this year.

(Additional reporting by Ben Blanchard in Beijing; editing by Andrew Roche)