China will help Europe cope with the crisis

On December twenty -second, The Financial Times reported that the Chinese government promised that it would continue to take “organized actions” in order to help European countries overcome the debt crisis. So, in particular, China wakes up and then buy up bonds of countries most affected by the crisis.

According to the data provided by the source, the Chinese Deputy Prime Minister – Van Tsishan promised to provide assistance to Europe, one of the responsibility of which is the supervision of the economic situation.

Today, the countries of the European Union are the main market for goods produced in China and, therefore, the PRC government is very interested in economic support for Europe. So, for example, in the first eleven months of this year, the turnover between the European Union and China amounted to four hundred and thirty -four billion US dollars, which is thirty percent more than the same period last year.

Another reason for China to help may be that the PRC has the largest gold and foreign exchange margin around the world, which must be sold in securities. The income level of risky bonds of European countries is significantly higher than the bond yield of states with a more stable economy, therefore, with the help of investments, China can get more income.

The European community said that he appreciates the support of the PRC and other international partners.

Note that this year several European countries collided with the debt crisis at once. So, for example, Greece is experiencing difficulties with repaying debt, which was previously forced to take a multi -billion dollar loan from the EU and the IMF. Also, a big debt has accumulated in Portugal and Spain. In order to support these countries, the Central Bank of Europe periodically boughts state bonds in local markets.