China Hopes Its Bond Buys Will Help Shore Up Europe |
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April 22, 2011
China could continue to invest some of its enormous reserves in European government debt, its ambassador to the European Union said Thursday. "It's possible we will purchase more sovereign bonds," said Song Zhe. "We are hoping to achieve stability in European financial markets."
China could continue to invest some of its enormous reserves in European government debt, its ambassador to the European Union said Thursday. "It's possible we will purchase more sovereign bonds," said Song Zhe. "We are hoping to achieve stability in European financial markets." China has recently bought chunks of Spanish and Greek debt, and its companies are investing across broad sectors of the European economy, including in ports, chemical firms and car makers. Two weeks ago, when Spanish Prime Minister José Luis Rodríguez Zapatero traveled to China, Premier Wen Jiabao pledged his support for Spanish public finances and its banking sector. The EU is China's biggest trading partner, and the two make up the world's richest bilateral trade relationship, with commerce totaling $522 billion last year, over a third of which was EU exports to China. By comparison, U.S.-China trade was $456.8 billion in 2010.
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