subject: British Media: In The European Debt Crisis Europe Do Not Have To Beg For Chinas Help [print this page] Bailed on the problems in the eurozone, China's position is as contradictory as that of Germany. This is an interpretation of the talks between the Chinese Premier Wen Jiabao and Germany's Chancellor Angela Merkel last week. Wen Jiabao said China was, through a variety of channels, searching for research and assessment of whether to get more involved in European debt problems. His speech may be written by the Germany Government so it could then accurately outline Germany's position. Its implied meaning was that China does have the interest in helping the Euro zone, but Euro zone should comply with Chinas conditions.
What worry the European leaders is whether China, other Asian countries and sovereign wealth Fund will eventually lend a helping hand to the Euro zone, or in what way to lend a helping hand. They have made a significant contribution already.
In 2011, 16 billion euros bonds issued by the European financial stability facility (EFSF) Asian investors purchase accounted for almost 20% of the total purchase. The purchase of governments, central banks and sovereign wealth funds--most of them from Asia between--subscribe in to between 32% and 54%. It is true that in the latest market financing of the EFSF, the two ratios have fallen sharply, only 12% per cent of the Asian investors to purchase bonds. At the time when bonds were issued, the Frances loss of AAA credit rating triggered the investors ' anger. A feature of Asian investors purchase of bonds is that they prefer the 5-year notes. But the EFSF decline in creditworthiness may affect future demand, and the euro zone must continue to implement self-help measures. One of the most impressive features of this issue of bonds of EFSF is that the purchase of euro-zone investors rises up to 76%.
Europe has repeatedly called for China to spend $ 3 trillion of foreign exchange reserves. If the Chinese government wants to buy sovereign bonds of high liquidity, it will choose the United States treasuries or bonds denominated in euros, even if the creditworthiness of bonds has been reduced. There is no need for Europeans to kowtow to China for help. At present, China will continue to buy debt in euro zone.
