China will not be El Salvador Europe
The eternal debt crisis threatens to keep Europe indefinitely in the recession, the uncertainty and instability. In the midst of this economic storm, some have looked to China in search of solutions. Could the Asian giant to help out in Europe? China being the banker to the world, Will you be ready to support European institutions and banks?
Unless major surprise in the coming days, the answer seems to be “no.” On 2 November, before the G-20 begins this Friday, President Hu Jintao met with his counterpart Nicolas Sarkozy in the city of Cannes. While affirming that the recovery of the European Union is fundamental to the global economy, Hu Jintao also said that Europe’s economic problems should be solved primarily by themselves.
Much clearer was a few days ago Cheng Siwei, vice chairman of Standing Committee of National Congress. On 30 October, in an interview in New York by the newspaper 21st Century Business Herald Cheng Siwei said that China could be the “save heroically” ni ni the United States and Europe that could be put on in China “hopes too unreal.” According to him, he Gross Domestic Product of China in one part are too big for the world economy (less than 10% of it) and he giant Asian “Tien limits.”
In recent weeks, as stated in 21st Century Business Herald, specific rumors have swirled about possible aid from China to Europe. According to some reports, the Asian giant could create a common fund with the International Monetary Fund to help solve the debt crisis in Europe. Some even encrypt the disbursement of Beijing at 70,000 million dollars.
Although China is the country with more foreign currency, the truth is that, as explained by Cheng Siwei, this money cannot be used at will. “That China has a large amount of foreign currency reserves is fine, but these funds are cash or can be used at any time,” he told the Chinese newspaper. If China suddenly uses its foreign exchange reserves, this would cause a dramatic decline in U.S. bond prices, which have a negative impact in both Beijing and Washington.
Both the words of Hu Jintao as by Cheng Siwei, the answer seems clear: China needs the recovery of Europe (its main trading partner) and perhaps I can lend a hand at any given time, but the Asian giant does not want cannot be the solution to European problems.
Besides the fact that China is also experiencing its own difficulties and that is a much poorer country than Europe, it is true that China’s population would also welcome an aid to Europe. In a survey published in Sina Weibo, when the social network in China, 80% of respondents thought that “Europe should help because first you have to solve internal problems of China.” Although it is far from a scientific survey (so far have voted 625 internet users), it does seem to reflect the overall mood in the country and the media.
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