China’s Vice President Xi Jinping on Friday voiced concerns over “drastic fluctuations” in financial markets but said that the US economy was “resilient.” Xi, who is expected to assume the top post in China’s leadership structure, made the statement after meeting with US Vice President Joseph Biden, who is visiting China on a four-day official visit. Speaking at a discussion with US and Chinese business leaders, Xi said the US economy is “highly resilient, and has a strong capacity for self-repairment. We believe that the US economy will achieve even better development as it rises to its challenges.” China’s leadership has made sharply worded statements about America’s rising debt obligations and state media has described the US as addicted to debt. However Xi’s comments focused on the need for US-China economic cooperation. Xi urged the US to bring down trade barriers and export restrictions for some high-technology products to China. Xi said that he was confident that China’s economy would avoid a hard landing and that China’s leaders would pursue a “proactive fiscal and monetary policy” to rein in inflation. In what appears to be an effort to avoid embarrassment during the high-profile visit from the American vice president, Chinese media censored news of a brawl between the Georgetown University basketball team and a Chinese army team, the Bayi Rockets. The US embassy called the incident “unfortunate.”

Chinese equities declined for the fourth straight session on Friday, following an overnight slide on Wall Street. The Shanghai Composite Index closed down 1.0 percent at 2,534.36. The benchmark index declined 2.3 percent for the week. Analysts expect the market to receive a lift from recent comments by China’s Vice President Xi Jinping, who said China’s economy won’t experience a hard landing.

In a sign of rising domestic demand in China, Coca-Cola (NYSE: KO) said it would invest USD4 billion in three years in the country. The new spending, to begin in 2012, will build upon a USD$3 billion investment the company announced in 2009. By comparison, Coca-Cola invested USD2 billion in its China business from 1979 and 2009. In the first quarter, Coca-Cola sold USD1 billion worth of cases of Coke products in China, doubling sales from five years ago. China accounts for 7 percent of the company’s annual volume.

South Korea’s benchmark Kospi index sank 6.2 percent to 1,744.88 on Friday, the steepest decline for any Asian index. It was the benchmark’s largest decline in almost three years, fueled by investor fears of a faltering US recovery and a brewing debt crisis in Europe. The Kospi retreated 2.7 percent for the week and has declined 22 percent since its May 2 record high. The Kospi has declined 15 percent this year and the index has Asia’s second-lowest valuation behind Pakistan’s benchmark index. Separately, Morgan Stanley downgraded its 2011 economic growth forecast for South Korea due to a weakening global economy and uncertain domestic demand. The investment bank estimates South Korea’s economy will grow by 3.8 percent this year, compared to an earlier forecast for 4.5 percent growth. The government target for growth in 2011 is 4 percent.

Malaysia’s economy grew at its slowest pace in years during the second quarter, according to Bank Negara Malaysia, the country’s central bank. The country’s gross domestic product (GDP) rose 4 percent in the second quarter, compared to a revised 4.9 percent expansion in the first quarter. The central bank said that Malaysia’s export-oriented economy may expand by 5 to 7 percent this year, compared to 7.2 percent in 2011. The bank’s governor cited Europe’s debt crisis and a slow US economic recovery as affecting global confidence. Malaysia’s inflation slowed last month, with consumer prices rising 3.4 percent from the previous year.