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Chinese Regime to Keep Investing in Debt Ridden Europe

6 years ago10 views

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While the spotlight is on Xi Jinping's visit to the US, in Beijing, Chinese leaders are focusing on boosting China-EU relations. Chinese leaders assured European officials at the China-EU summit of their plan to continue investing in debt-ridden Europe, although they were careful not to make concrete promises.

On Wednesday, Chinese leaders Hu Jintao and Li Keqiang met European Council President Herman Van Rompuy and European Commission President Jose Manuel Barroso for talks.

Both men were in Beijing for the China-EU summit that was postponed from late last year when European leaders grappled with a worsening debt crisis.

The Chinese regime used the summit to stress support for the Euro zone—and to announce its commitment to continue investing in debt-ridden Europe.

[Liu Weimin, Foreign Ministry Spokesman]:
"China's leaders have clearly expressed that China supports the EU's efforts to deal with the debt issue."

Earlier on Wednesday, the Chinese regime's Central Bank governor made the same promise.

[Zhou Xiaochuan, Chinese Central Bank Governor]:
"China will continue to invest in the government debt of European countries under the principles of security, liquidity and maintaining, and increasing value."

Zhou urged the EU to create more investment opportunities for China.

The Chinese regime has previously been unwilling to make definite financial commitments. It has repeatedly expressed concern for the widespread protests and strikes across Europe.

But with 3.2-trillion US dollars of foreign exchange reserves at hand, the Chinese regime has the financial capacity to bail out some European governments.

Analysts estimate about one quarter of the Chinese regime's foreign reserves are held in euro-denominated assets.