A collapse of the eurozone would be a "disaster for everyone" and EU leaders have not "fully realised" the urgency of the situation, a Chinese official said Tuesday, adding that Europe's problem is not money, but lack of confidence.

China's ratings agency Dagong on Tuesday downgraded Greece's sovereign rating to the second-lowest 'default' level, a move suggesting Beijing has no intention of "playing Santa Claus" to the ailing eurozone, experts say.

China and India have indicated that the Greek referendum will make it harder for them to put their money into eurozone rescue schemes.

Chinese diplomats are awaiting a detailed proposal on taking part in the EU bail-out fund, the EFSF, while promising not to push for market economy status or lifting the arms embargo in return.

China must accept a "greater responsibility" for global stability, with the country's "reputation" and "influence" unlikely to be decided by economic factors alone, European Council President Herman Van Rompuy has told Chinese President Hu Jintao.