(Image source: CNS)



BY XIAONAN WANG

ANCHOR CHRISTINA HARTMAN

 

China’s Prime Minister Wen Jiabao pledged support to ease eurozone debt on Tuesday. Here’s euronews with more.

 

“China says it’s ready to take a more active role in looking for a solution to the European debt crisis. … EU leaders want China to invest some of its large foreign exchange reserves in a bailout fund to help debt-stricken countries.”

 

China’s central banker Zhou Xiaochuan said Wednesday that China won’t cut its reserves of European currency. But an analyst for Fox Business says China has left a lot of other details up in the air.

 

“What exactly will they invest in? Will they invest in Europe’s bail out funds? We heard this kind of rumbling from Beijing before it’s never really materializing into anything.”

 

China’s reluctance to make concrete promises comes from having to weigh its own interests as well. An analyst tells CNBC — China isn’t acting solely out of altruism.

 

"I think China’s looking to appear as constructive and responsible participants in the global economy, and more importantly trying to safeguard their own interests."

 

Prime Minister Wen Jiabao said in a statement — helping Europe is helping China. A reporter for The China Times explains why.

 

“Chinese leaders also know that poor health of the European economy has a direct impact on the exporters’ order books of the second world economy, for which the EU is the largest market.”

 

But regardless of China’s pledge of support — a business analyst tells Public Radio International — the European economy is a hurdle that can’t be cleared in the short run.


“The European Union is a trade and economic union, not a financial and political union; there’s a lack of central financial discipline that can be imposed on some of the weaker members...so these structural problems are unlikely to be solved by China herself.”

 

But a German sales head from ETX tells Bloomberg — China’s support could give other countries the confidence to get involved as well.

 

“China...not only could increase the firepower available but might also persuade other countries like Japan, Russia, oil-rich states and possibly even the U.S. to actively take part in combating the crisis."

 

China Vows Support for Eurozone

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Feb 15, 2012

China Vows Support for Eurozone

(Image source: CNS)



BY XIAONAN WANG

ANCHOR CHRISTINA HARTMAN

 

China’s Prime Minister Wen Jiabao pledged support to ease eurozone debt on Tuesday. Here’s euronews with more.

 

“China says it’s ready to take a more active role in looking for a solution to the European debt crisis. … EU leaders want China to invest some of its large foreign exchange reserves in a bailout fund to help debt-stricken countries.”

 

China’s central banker Zhou Xiaochuan said Wednesday that China won’t cut its reserves of European currency. But an analyst for Fox Business says China has left a lot of other details up in the air.

 

“What exactly will they invest in? Will they invest in Europe’s bail out funds? We heard this kind of rumbling from Beijing before it’s never really materializing into anything.”

 

China’s reluctance to make concrete promises comes from having to weigh its own interests as well. An analyst tells CNBC — China isn’t acting solely out of altruism.

 

"I think China’s looking to appear as constructive and responsible participants in the global economy, and more importantly trying to safeguard their own interests."

 

Prime Minister Wen Jiabao said in a statement — helping Europe is helping China. A reporter for The China Times explains why.

 

“Chinese leaders also know that poor health of the European economy has a direct impact on the exporters’ order books of the second world economy, for which the EU is the largest market.”

 

But regardless of China’s pledge of support — a business analyst tells Public Radio International — the European economy is a hurdle that can’t be cleared in the short run.


“The European Union is a trade and economic union, not a financial and political union; there’s a lack of central financial discipline that can be imposed on some of the weaker members...so these structural problems are unlikely to be solved by China herself.”

 

But a German sales head from ETX tells Bloomberg — China’s support could give other countries the confidence to get involved as well.

 

“China...not only could increase the firepower available but might also persuade other countries like Japan, Russia, oil-rich states and possibly even the U.S. to actively take part in combating the crisis."

 

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