China's premier warned of an "urgent" need to solve the European debt crisis Thursday and said Beijing was looking at ways it could contribute to bailout funds, after talks with Germany's chancellor.

Angela Merkel is in China for a three-day trip aimed at boosting her hosts' confidence in Europe, where the sovereign debt crisis has seen a wave of credit-rating downgrades and brought Greece to the brink of bankruptcy.

Speaking at a press conference with Merkel in Beijing, Wen Jiabao said solving Europe's woes was "urgent" and called on the international community to work together on the embattled region, which is China's top export market.

"China is investigating and evaluating ways, through the International Monetary Fund, to be more deeply involved in solving the European debt problem via ESM/EFSF channels," Wen said.

He was referring to the European Financial Stability Facility, a temporary rescue fund that was established to help struggling economies in Europe, and the European Stability Mechanism -- a newer, permanent fund.

China, the world's second-biggest economy, has watched with increasing concern as the debt crisis has deepened, repeatedly urging European leaders to get a grip on the situation.

In a speech earlier Thursday at the Chinese Academy of Social Sciences -- a leading government think-tank -- Merkel sought to assure Beijing that the situation was under control.

"The euro as our common currency has made Europe stronger," she said.

The leader of Europe's biggest economy said EU members were now "deeply convinced" that they were on the right track with a treaty agreed by most EU nations on Monday that aims to stop countries from overspending.

The treaty -- pushed by Germany and the European Central Bank -- will require governments to introduce laws on balanced budgets and impose near-automatic sanctions on countries that violate deficit rules.

It will come into force after at least 12 euro nations ratify it, and only those countries that sign up will be able to access bailout aid from the new rescue fund.

Merkel also broached the sensitive issue of human rights at a press briefing in China -- which censors information it deems a threat to its one-party rule -- saying free speech and Internet freedom were important.

She had reportedly asked to meet journalists working for the Nanfang group in China's south -- known for its cutting-edge reporting -- but authorities refused her request, a source from the German delegation told AFP.

On the diplomatic front, Merkel said in her earlier speech China "must use its influence to tell Iran that transparency is a must and its nuclear programme must be open".

A German government source said earlier the chancellor would also call on Beijing not to take advantage of Europe's ban on Iranian oil -- imposed on Tehran over its nuclear stance -- to boost its own imports of the resource.

The US, the European Union and others have ramped up sanctions to target Iran's oil industry and central bank since a UN atomic watchdog report in November raised suspicions Tehran had done work on developing nuclear weapons.

Iran insists its nuclear drive is for peaceful purposes and that the International Atomic Energy Agency report was based on "forgeries" provided by its enemies.

Merkel, who will meet President Hu Jintao on Friday, also touched on Syria, saying it was "important that the international community speak with one voice at the United Nations."

The German leader is expected to ask for Beijing's support for a UN Security Council resolution against Syria, where fighting between President Bashar al-Assad's security forces and rebels is escalating.

On bilateral trade between China and Germany -- which reached $169 billion in 2011, an 18.9-percent increase from the previous year -- Merkel called for a level playing field for German firms operating in China.

Also Friday, Merkel will fly to the southern province of Guangdong -- where nearly 500 German companies are already present -- with Wen and executives from the energy, chemicals, engineering, banking and electronics sectors.

Her visit to the manufacturing hub will include a meeting with Gan Junqiu, the state-backed Catholic bishop of Guangzhou -- the provincial capital -- according to a German diplomatic source.