First published: Public Service Europe, 04/07/2011
By investing in Europe, China is hoping the EU will reciprocate and lift the arms embargo imposed in 1989 after Tiananmen – among other favours – writes banker George Magnus
China’s top brass has been proclaiming for several months that it is worried about the economic stability of the eurozone. They say the nation will remain a long-term investor in the euro and euro bond markets. As the world’s biggest creditor nation, with over $3 trillion of foreign exchange reserves, China is in pole position to lend a helping hand to Europe, as it strives to extricate itself from a sovereign debt crisis that has become an existential nightmare. So why might China be interested to do so, and how can we best judge whether it will? ….. more
