The leaders of Germany and France voiced confidence on Monday that China would take the necessary steps to stabilise its economy, playing down the impact of a recent plunge in Chinese stocks on the global economy.
“China is a big country, it’s the number two economy in the world. It’s one of the most competitive economies and it has considerable resources,” French President Francois Hollande said at a news conference in Berlin.
“It will find the appropriate responses and the global economy is solid enough to grow independent of the situation in China,” he added, noting that falling stock markets would not determine “our positions”.
Chinese stocks slumped almost 9 percent on Monday, their worst performance since the depths of the global financial crisis. The plunge wiped out what was left of 2015’s gains, which in June stood at more than 50 percent.
German Chancellor Angela Merkel, hosting Hollande and Ukrainian President Petro Poroshenko, said she expected China to do “everything it possibly can” to stabilise the situation.
She noted that the International Monetary Fund (IMF) does not expect a lasting crisis in China.