Why Is China Trying To Save The Euro?

Chinese premier Wen Jiabao realised that his economy needs struggling Europe to keep buying its goods.

Enter The Dragon 'To Save The Euro’ -- The Telegraph

It is in the interest of cash-rich China to help resolve the eurozone debt crisis, but Chinese premier Wen Jiabao, who is visiting Britain and Continental Europe, will want a share of the West’s buying power in return.

As Wen Jiabao, the Chinese premier, stepped off his plane in Birmingham on Saturday, it was difficult to avoid the feeling that the UK, and Europe, have never looked weaker in Chinese eyes.

In private, senior Chinese diplomats are now openly scornful of Britain’s economic prospects and have even asked why Mr Wen should grace such a weak trading partner with three days of his time.

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More News On China's Commitment To Help The Euro

China: We'll spend billions to prop up the stricken euro -- The Daily Mail
China sovereign fund official confident in euro -- Reuters
Chinese premier provides boost to embattled euro zone -- Euronews
China makes an uneasy saviour for Europe -- Reuters
Wen Says China Is Long-Term Investor in European Bond Markets -- SFGate/Bloomberg
Wen Says China Will Keep Investing in European Bonds in Vote of Confidence -- Bloomberg
Chinese Premier Voices Support for European Economies -- Voice of America
Chinese Prime Minister’s Visit to Europe Shows Concern Over Euro -- New York Times

My Comment: From my viewpoint .... this is China's stepping up and making a commitment to European fiscal and economic stability .... and they are putting their money where their mouth is.

China Shows Its Economic Power By "Rescuing" The EU

Chinese Vice Premier Wang Qishan (2nd R), European Commission Vice President in charge of competition policy Joaquin Almunia (2nd L), Trade Commissioner Karel De Gucht (1st L) and Commissioner for Economic and Monetary Affairs Olli Rehn (1st R), attend the press conference on the Third China-EU High Level Economic and Trade Dialogue in Beijing, capital of China, Dec. 21, 2010. (Xinhua/Xie Huanchi)

Euro Rises As China Supports EU Debt Action -- The Telegraph

The euro bounced back on Tuesday, as support from China's Vice Premier over the EU's handling of the debt crisis saw the currency rise against 14 of its 16 most traded counterparts.

Speaking at a one-day economic relations and trade forum in Beijing, Wang Qishan said that China supported the European Union's efforts to try and take control of Europe's spiralling debts.

He said that the EU and IMF had "taken concrete action to help some EU members counter the sovereign-debt crisis.”

The euro rose 0.36pc against the dollar to $1.317 on Tuesday morning, and edged up 0.26pc against the yen to 110.20, after falling to its lowest level in two weeks on speculation some European nations will struggle to raise funds amid a raft of credit-rating and outlook changes.

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More News On China Assisting The EU In It`s Debt Obligations

China supports EU efforts to ease debt crisis -- Reuters
China vows to step up help to tackle euro crisis: report -- Reuters
Euro Rises; China Supports EU Measures -- Wall Street Journal
The Overnight Report: China To Rescue Europe? -- NineMSN
China, EU reach "important consensus" at economic, trade talks: vice premier -- Xinhuanet
China worried about European debt -- AFP

My Comment: Money talks .... bullshit walks. For the Chinese .... their vast financial holdings are doing all the talking for them.

On a side note .... where are the Americans?

Answer .... the Americans have bigger problems.

A Shape Of Things To Come In Chinese - European Relations

Chinese Prime Minister Wen Jiabao (R) during a visit to the Acropolis with Greek Prime Minister George Papandreou in October. DPA

Capitalizing on the Euro Crisis: China Expands Its Influence in Europe -- Spiegel Online

China is seizing on Europe's debt problems to expand its influence on the continent with large-scale investments and purchases of government bonds issued by highly-indebted states. The strategy could push Europe into the same financial dependency on China that is posing a dilemma for the US.

Portugal's cavalry staged a magnificent parade to welcome Chinese President and Party General Secretary Hu Jintao, 67. Suddenly, one of the horses reared up and threw its rider to the ground. The state guest from China waited motionless until the end of the ceremony before he went to the fallen cavalryman, embraced him, and asked if he was all right.

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My Comment: Money talks, and for the moment China has a lot of it. Expect Europe to "kow-tow" to Chinese "political demands" in the near future.

Beijing Muscles Its Way Into Europe (Via Through Greece)

Greek prime minister George Papandreou welcomes Chinese vice-premier Zhang Dejiang prior to their talks in Athens Photo: AFP/Getty Images

Beijing's Greek Deal A Wake-Up Call For EU -- Sydney Morning Herald

CHINA'S forceful intervention in the Greek debt crisis this week has given harassed European Union leaders a sharp reminder of the challenges posed by Beijing's relentless pursuit of global interest and influence.

What was seen in Athens as a potential financial lifeline was, for others, a troubling sign of a future made in China.

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My Comment: The German's commit hundreds of billions to the stabilization of the Greek financial crisis .... and they get spat upon by Greeks.

The Chinese make a few small trade and financial deals worth a few billion dollars but with strings attached (More on these trade deals here).... and they are heralded as saviors.

Am I the only one who sees something wrong with this picture?

China Asserts Itself In GPS Turf War

Race: This March 2008 photo shows a satellite for Galileo, Europe’s version of GPS. China plans to launch the first satellite for its own satnav system, Compass 2, in June. (Maartje Blijdenstein/AFP/Newscom/File)

From Christian Science Monitor:

It plans to use the same signal frequency for its version of GPS that Europe had carved out. The overlap could block Europe from using its satellites for security reasons.

At the European Union’s embassy in Beijing, a recently built extension bears the name “Galileo.” It celebrates one of Europe’s most high-profile and symbolic partnerships with China, but it might soon have to be rechristened.

China’s membership of “Galileo,” the European-led version of America’s Global Positioning System (GPS), has soured to the point where the two sides are locked in a dispute over radio frequencies, as China races ahead with its own network of satellites.

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My Comment: I had to read this story twice .... I was laughing too much. Typical of the disorganized and naivety of the Europeans. They went to bed with the enemy .... and like all Johns who go to the bed with a prostitute, they realize that the cost to get rid of her will probably cost them more than what they had expected.

Sigh .... this is so typical of today's Europe. They want to embrace the world without realizing that the world hates them, and that they have their own agenda on what they want.