China attempts to boost IMF's capabilities

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In Mexico, where the G20 Summit is already underway in the resort city of Los Cabos. The meeting of world's largest economies is aiming to help the IMF build a 430 billion dollar financial firewall to shield the world from the European debt crisis.

China has announced it will contribute 43 billion US dollars as the world's leading economies attempt to boost the Fund's capabilities.

Despite the bright sunshine in Los Cabos, the eurozone crisis is casting a shadow over the G20 summit.

Chinese President Hu Jintao (5th L, front) poses for a group photo with other participants of the seventh Leaders' Summit of the Group of Twenty (G20) in Los Cabos, Mexico, June 18, 2012.(Xinhua/Li Tao)

Mexican President Felipe Calderon opened the summit with a speech urging world leaders to work toward a "stronger and more responsible" Europe.

He says, "We are all united in our solidarity and our strong support to our European friends and brothers, the people and their government."

Chinese President Hu Jintao also spoke at the meeting, urging leaders to maintain growth and employment and stability as top priorities.

This year's summit is being held during a particularly tough time for the global economy. The prolonged eurozone debt crisis, slowdowns in growth, and persistent high unemployment rate are all threatening the fragile recovery.

The meeting is expected to lead to more than 430 billion US dollars in concrete commitments to the IMF as insurance against future bailouts.

China is contributing 10 percent of this figure.

Besides China, the other BRICS nations of Brazil, Russia, India and South Africa have also pledged to contribute.

The eurozone nations are putting up 200 billion US dollars, while Japan has pledged 60 billion .

Executive director of IMF Executive Board He Jianxiong says, "I think how much China will contribute will be based on, first of all, the need, and then, our capacity. And capacity is the most important factor. And China's quota inside the IMF.

China is still a developing country, not a developed country. China will try its best to pitch in. In terms of solving the euro debt crisis, Europe should mainly depend on itself, using macro economic policies and structural reform. But since the crisis is serious, support from the international community is also necessary"

China also voiced its support for the nations of the eurozone.

Chinese vice Finance Minister Zhu Guangyao says, "We believe that European countries can solve their troubles through their own crisis management. Of course, this process is quite painful and costly. We believe that after such painful process, the eurozone will be more powerful and the euro will become one of the world's main reserve currencies."

On the sidelines of the G20 summit, President Hu Jintao also met with German Chancellor Angela Merkel and French President Francois Hollande.

Merkel briefed Hu Jintao on the latest developments in Europe's economic and financial situation and the bloc's plans to deal with emerging problems.

Hu Jintao stressed that China supports the continent's efforts in promoting integration and maintaining the stability of the euro.