Linked on our blogs with EU sustainability schemes fall short of safeguarding rural livelihoods, on Food Crisis and the Global Land Grab, October 27, 2011. – Published on China Daily /Europe, October 28, 2011.
… Analysts said that China should extend support to EU efforts to tackle the ongoing financial turmoil because it is threatening the demand for Chinese exports to the region. However, they said China should be cautious about the risk of investing in European sovereign bonds.
- “China would like to see the EU find a solution toward sustainable recovery. But the specific method should be evaluated very carefully,” said Zhang Yuyan, director of the Institute of World Economics and Politics with the Chinese Academy of Social Sciences.
- Analysts said that China is unlikely to invest directly in European sovereign debt because of the high risk. But it has been reported that China may help the EU boost its bailout fund through the International Monetary Fund (IMF).
- Zhong Wei, director of the Financial Research Center at Beijing Normal University, said that China’s aid through the IMF is in line with European efforts to bolster the IMF’s role in dealing with the regional economic woes.
- “It will also help China gain a greater say in the global financial system,” he said. But Zhong noted that the main concern for China is still whether the EU can act in unity.
- “It is like a fire in a house. It is unreasonable for the owner to call his neighbor to put it out if the owner did not try to put it out first,” he said.
- However, some analysts said that aid from China would boost market confidence only in the short term and it would not solve the debt crisis.
- “Money and debt write-downs cannot solve the Greek problem. Europe has to rely on itself to adjust the pattern of its economic growth and to deal with the structural problems in its economy,” said Tan Yaling, head of the China Foreign Exchange Investment Research Institute.
- Some experts argued that China’s contribution to the bailout fund should be matched with rights, such as an increase in its voting quota at the IMF and recognition of its market economy status. Europe should also open its markets wider to facilitate more direct investment from China, they said.
Klaus Regling, chief executive of the EFSF, is scheduled to visit China on Friday to meet with buyers of bonds issued by the bailout fund and discuss how China might contribute to the fund. (full text).
EU leaders burn midnight oil at marathon debt summit, de-world.de, octobre 27, 2011;
Sommet européen: les principales décisions, Libération, le 27 octobre 2011;
GEAB N°58 is available! Global systemic crisis – First half of 2012: Decimation of the Western banks, October 16, 2011;
Iraq war veteran suffers life-threatening injuries after being struck in the head at Occupy Oakland protest, on National Post, October 27, 2011;
Occupy Oakland raided by riot police using tear gas and beanbag rounds, on National Post, October 27, 2011;
OWS: la guerre fait rage entre les indignés et la mairie de New York, le 28 octobre 2011;
OWS and Allies Rally and March United for Civil Rights, October 27, 2011.