Leaders from over 40 European and Asian countries met in Beijing Friday to encourage solidarity in facing the crisis.
Globalfinancial problems were at the top of the agenda as they gathered forthe first day of the two-day Asia-Europe Meeting, known as ASEM.
China'sPresident, Hu Jintao, addressed the opening ceremony carried live onnational television. He said the crisis was increasing instability inChina's economy and that concerted efforts were needed to shore-up their interdependent economies.
Hesays China's economic growth faces various hardships and challenges. He says for China's economy to maintain a healthy state is itself animportant contribution to global financial market stability and global economic development.
Earlierin the day Southeast Asian countries plus China, Japan, and SouthKorea, agreed to an $80 billion regional emergency fund tobattle the effects of the crisis.
Nonetheless, Asian stockprices continued to tumble. Hong Kong's Hang Seng index fell to afour-year low while China's benchmark stocks dropped to a two-yearlow. The Japanese and South Korean exchanges dropped to similar record lows.
TheEuropean Commission President, Jose Manuel Barroso, said Asia andEurope needed to work with world partners to restore growth, stability,and confidence.
"We cannot meet these challenges by closingthe door and simply looking after our own house. We have all benefitedfrom trade and an open business environment," Barroso said. "So, we should firmlyresist calls for protectionism, isolation and economic nationalism. This would only harm us and our prospects for recovery."
Despitethe financial crisis topping the meeting agenda, Barroso said equallyimportant was working together on a range of critical world issues.
The meeting is also to address cooperation on climate change, sustainable development, and energy security, among other issues.
Europe wants further commitments from advanced developing nations like China and India to reduce greenhouse gas emissions.
However,the Asia-Europe Meeting is a summit for discussion and demonstrationsof cooperation and is not expected to produce any binding agreements.
China'sofficial Xinhua news agency says during the meeting Chinese officialsare expected to put forward a proposal to build an "eco-city network"in Asia. It did not elaborate.