China is ready to help

The eurozone is looking for financial aid from emerging countries, mainly China. A prospect that sends shivers down the spines of many Europeans. But for the official Beijing daily Global Times, any future deal will need to be a “civilized” one.

Published on 28 October 2011 at 15:02

European leaders reached an agreement yesterday to reduce the Greek debt. They expect cash-rich countries outside the EU to partly provide funding for their bail-out plan. China, with the largest foreign exchange reserve, has become a key target.

A developed Europe turns to China for cash. This sounds jarring to people in both Europe and China. Some Europeans hold that Europe hasn't dropped to the level to beg China just yet. The mainstream mentality there seemingly thinks the EU should prompt China to provide funding, while it shouldn't give China any other benefits.

In China, fierce debates are underway. Many can't understand why China should extend a helping hand to Europe, since its own city of Wenzhou is in a funding crisis.

China and Europe are not the type of sworn friends who can extend a non-hesitant helping hand as the other experiences a crisis. Both sides are adding calculations at the moment. Public opinions further complicate the scenario - on both sides, there are unprofessional analysts who prioritize catering to the raging populism.

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Markets must open

Perhaps the depth of China's participation in the eurozone's bail-out plan has been decided by common interests and mutual distrust between both sides. China will not stay detached, since its interests are closely bonded to Europe in globalization.

But on the other hand, China won't bring a "big surprise" to Europe. Even wealthier economies within the eurozone feel reluctant to help Greece. As an outsider, China can't fix a problem that can only be fixed by eurozone members themselves.

If the EU really wants China's funding, they should consider further opening their markets to China, as well as admitting China's position as a market economy. If they think such "deals" are not worth it, China won't force them to proceed.

For the Chinese, it is ignorant to link the eurozone's bail-out plan to Wenzhou's debt crisis. The former is related to using China's foreign exchange reserves, which can't be used to save the enterprises left by runaway bosses in Wenzhou.

A pinch-fist Europe

As a world power, China should help out others who have been hit by a crisis or disaster. The Chinese should understand that a country that only chases after its interests but ignores its morals will be disliked.

But the Europeans should also reflect upon themselves while rebuking China as a pinch-fist. They discriminate China's system, and they do not want to export technologies to China.

Whenever a Chinese enterprise makes a buyout investment in Europe, local public opinion flares up. They fear that China will learn too much from them and become more successful. They just want to lie on their old assets and always take the lead.

This mentality makes Europe appear as a pinch-fist. China's participation in the eurozone's bail-out plan should not be over-politicized. It should be a civilized deal, and the tacit rules are crystal clear to both parties involved.

Counterpoint

Ignore human rights for Chinese largesse?

Europe is “tempting the dragon”, to save the eurozone, headlines Gazeta Wyborcza. But according to the Warsaw daily, this may come at a high cost. “Europe rests its hopes on China. A country that carries out the highest number of executions in the world and sends its dissidents to labour camps. A state that prosecutes Tibetans and Uyghur people and censors the Internet.”

“Counting on China to strengthen the EFSF, EU leaders should answer a basic question”, Gazeta Wyborcza writes. “If they take [China’s] billions to save Greece or Italy, will they still have the courage to condemn the breaching of human rights in Tibet or Sinkiang? [...] Europe may get scared that Beijing will put its foot down or it may simply feel foolish since it is not done to ask for help and to lecture [the donor} at the same time.”

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