Home > China, Europe, Global Finance, Politics > ‘Opportunist’ China’s Help Rejected By EU

‘Opportunist’ China’s Help Rejected By EU


China finds that its US$3 trillion forex hoard cannot buy what it wants.

China's US$3 trillion are not enough to make European defense purchases. |  Image source and courtesy - dantomozei.files.wordpress.com; first published at http://en.cnci.gov.cn//HtmlFiles/News/2011-2-25/13348.html in China Daily on 2011-2-25  |  Click for larger image.

China's US$3 trillion are not enough to make European defense purchases. | Image source and courtesy - dantomozei.files.wordpress.com; first published at http://en.cnci.gov.cn//HtmlFiles/News/2011-2-25/13348.html in China Daily on 2011-2-25 | Click for larger image.

European policymakers are irked by what they call the opportunism of China’s apparent wish to trade some of its vast foreign wealth for increased influence.

“The idea that Europe is desperate for China’s money is wrong,” one senior euro zone monetary official said this week, speaking on condition of anonymity.

“I don’t like all this talk of Europe begging China for help, because Europe has the resources to solve its own problems if it can find the political will,” the source said.

China’s leaders, meanwhile, must show their citizens that giving some of the country’s $3.2 trillion in foreign exchange reserves to Europe is a good thing — especially given the country’s exposure to the 36 percent decline in the nominal value of the U.S. dollar over the last decade.

China had offered help in return for European support to grant it either more influence at the International Monetary Fund, market economy status in the World Trade Organization, or the lifting of a European arms embargo, said the sources, both of whom have direct knowledge of the matter, including one who has ties to the leadership in Beijing.

Granting China market economy status that would, under WTO rules, make it harder for Europe to apply trade sanctions against Chinese imports. China accepted its designation as a non-market economy when joining the WTO in 2001.

And China has been relatively restrained in not demanding publicly that Europe scrap an arms embargo against China — introduced after the 1989 military crackdown on student-led, pro-democracy protests centred on Beijing’s Tiananmen Square — in return for financial assistance to end the debt crisis.

China fears that the euro zone’s sovereign debt crisis could trigger trade friction with its biggest export market and hurt its exports and economy. (via Exclusive: Politics stymie China’s EU aid offer: sources | Reuters).

Pot calling a kettle black

A text book case.

What makes the EU act pricey – while country after country is going down the bankruptcy route? What is making the EU feel superior?

Is a two-party democracy much superior or better than 1-party democracy?

Just because the heads of EU countries are selected from two sets of power-mongers (what else is a political party?) – instead of one as in (Communist Party) China, does not make EU any better or superior. Try as much as I can, there is little difference I can see between China and the EU.

Except gloss and polish.

View from China  |  Cartoon by Illustration: Liu Rui; Source and courtesy - globaltimes.cn; Published on 08:23 December 28 2010  |  Click for source image.

View from China | Cartoon by Illustration: Liu Rui; Source and courtesy - globaltimes.cn; Published on 08:23 December 28 2010 | Click for source image.

West is the Best

The West does have more skills when it comes to ‘settling’ rivals.

You only have to look at the way in which Sweden has fixed a rape case against Julian Assange. China is still a few decades behind EU and USA in mounting an operation – such as the Swedish ‘Trojan’.

None of China’s three demands are either bad in principle or prudence. But it does make me wonder. China’s US$3 trillion of foreign exchange reserves is not enough if it wants to buy EU defence products.

Compare this with the US and EU eagerness to sell defence items to India.


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  1. November 12, 2011 at 10:05 am

    Indrajit Roy Choudhury ProfileIndrajit Roy Choudhury shared a reaction in European Financial Crisis 50 mins ago

    “China is right if they insist for larger IMF share. WB and IMF is partial to US and Europe and it needs to be changed.”

  2. November 12, 2011 at 10:19 am
    SShankara -

    The EU has over-valued its currency

    This has created a huge problem for itself. This over-valuation was done to ensure acceptance of Euro as a reserve currency. For how long can EU sustain this over-valuation.

    When and if the tide turns, will Europe be any different or any less opportunistic than the Americans?

    Vishwa Aggarwal –

    The West must be quarantined.

    After 500 years of bloodshed, genocide, slavery, piracy – to find that West even today has some takers, is beyond belief.

  3. February 24, 2014 at 12:07 pm

    China should convert their dollars go Gold! The Dollar has an intrinsic value of exactly zero. It is a fiat currency. Their mistake in accumulating so much paper money. If I were china, I’d buy all the mines all around the world, buy Gold, try to build a domestic market instead of being so export oriented etc etc. Thank God India did not accumulate such huge hordes of worthless paper. For all the criticism leveled on India, there are some things that we do right, like accumulate Gold! Now it’s time for Indians to own guns and accumulate ammunition.

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