Eurozone finds support from Communist China



China

China

Support came from unlikely quarters for the crisis laden European Union when Communist China offered to help countries passing through the debt crisis.

Chinese Foreign Ministry Spokeswoman Jiang Yu said: “We are ready to support the Eurozone to overcome the financial crisis and realise economic recovery”.

She emphasized that the Eurozone will become a ‘major market’ for Chinese investments.

Some European Union countries are struggling with high levels of debt. In a recent move, the International Monetary Fund (IMF) and the EU has promised billions of Euros to Greece and the Irish Republic.

Greece took a loan of €110 billion earlier this year while the Irish Republic accepted an aid package worth €85 billion. There is widespread fear that Portugal may be forced to seek help next and Barcelona is also teetering.

China has built a huge reserve of foreign currency topping $ 2 trillion, mostly held in US dollars.

Ms Yu’s comment suggests that China may buy Euro denominated assets in the future to support the wobbling Eurozone economies.

China’s Vice Premier Wang Qishan last week said he supported the measures taken by the EU and IMF to bail out some of the Eurozone economies.

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