Eurozone Crisis: 'China To Rescue Europe With Investment'
China is "very likely to contribute" to bailing out the eurozone but doesn't want to "throw away the country's wealth," it was reported on Thursday.
Before any cash injection is agreed Chinese government wants to ensure Europe's leaders are able to meet key conditions, the Financial Times says.
“It is in China’s long-term and intrinsic interest to help Europe because they are our biggest trading partner but the chief concern of the Chinese government is how to explain this decision to our own people"
“The last thing China wants is to throw away the country’s wealth and be seen as just a source of dumb money,” it quoted Li Daokui, a member of China’s central bank monetary policy committee as saying.
According to the FT.com, conditions could include asking European leaders not to criticise China’s currency policy.
Other reports say that an editorial in state news agency Xinhua says: "While China and other emerging countries indicated they won't be bystanders of the eurozone crisis, it would be unfair to ask them to shoulder the same responsibility as those directly responsible for the crisis.
"Emerging economies should not be seen as the EU's Good Samaritans – in the end, the EU has to pull itself out of the crisis."
Elsewhere, Reuters has reported that a Brussels-based Chinese diplomat believes China had always "done its bit" adding: "There is nothing concrete and detailed."
For China, choosing to support the eurozone is an important decision as trade links are strong and the EU is the biggest trading partner.
Yu Yongding, a former member of China’s central bank monetary policy committee, told the FT.com: “European leaders also must have a clear plan of what to do and they must show China they have the political will as well as the support of their own people; if we see protests and chaos all the time, then China won’t have confidence in Europe’s political ability.”
Last month the BBC reported that Chinese Premier Wen Jiabao warned western countries to sort out their debt problems.
Speaking at the World Economic Forum, he said China was willing to help by investing in Europe.