Chapter 74 19. Safes in China and Europe?

According to some information sources, the Chinese government is a creditor country of major European countries, and its holdings of European bonds are in fact equal to its holdings of US bonds. In early 2011, China had invested almost 16 billion euros in support of the first three European countries in great trouble: Greece, Portugal and Spain.When will the funds be invested in other countries? Not long ago, China provided financial support to this "ancient continent", and the effect is obvious.This can be seen in China's recent purchases of foreign government bonds and its investments in other large economies and financial markets in Europe.

In response to the euro crisis, the International Monetary Fund will invest 250 billion euros, of which China will account for 15.5 billion euros. Countries in the Eurozone are always targeted by the fiscal market with "hedge funds", some of which are established in countries with light taxes.These countries have enormous financial wealth.In the first three months of the euro crisis, hedging funds derived from speculation gained 2.2 billion euros. In response to the euro crisis, as early as 2010, the European Union wisely invested a sustained rescue fund of up to 750 billion euros (8% of European GNP) to rescue those euro zone countries in severe economic difficulties.Today, the countries being rescued are Greece, Iran, Portugal and Spain.

These countries are burdened with huge fiscal deficits and need to deal with this crisis even more!But some other targets are not under the speculators' umbrella: Belgium and Italy...Euro bailouts in these countries amount to 15,000 trillion euros. Before the situation in the euro zone turned sour, China provided financial assistance to prevent Europe from falling into danger.But also to prevent a repeat of the global economic crisis.This is the first time that China has implemented the Marshall Plan on a large scale on the European continent. China's rescue plan in Greece reached 5 billion euros, aimed at preventing the Greek credit crisis from spreading to other European countries.The measures were quite timely: 14 contracts were signed between the two countries.In exchange, the Greek shipbuilder will order six sea-going ships manufactured by Chinese shipyards.

China's largest shipping company - China Ocean Shipping Corporation (COSCO) has won a 35-year concession for a part of the port of Piraeus (the largest port in Greece).The purpose is to open up a bridge to transport goods from China to Europe.The number of duty-free containers passing through the port of Piraeus is expected to reach 800,000 containers this year and 3.7 million containers by 2015. Such support is welcomed by the EU.Stephen Lodge, director of forecasting at the Economist Intelligence Unit, believes that this consensus will promote the establishment of a stable economic environment and reduce people's concerns about the possibility of a second recession in Europe.

The Chinese government pointed out that China supports Europe's positive measures and hopes that Europe will overcome the economic crisis at an early date.But Yu Yongding, president of the World Economic Association, believes that it is too early to say that the situation in Europe has stabilized. After Greece, Portugal has been aided by China.In order to reduce Portugal's debt, China expressed its willingness to buy Portugal's national debt of 5 billion euros. Portugal is the second country whose financial markets have been hit after North American agencies downgraded their ratings.China has started buying Portuguese government bonds. According to the Wall Street Journal, Portugal has sold 1.1 billion euros of national debt to China.

After bailing out Greece and Portugal, China fulfilled its commitment to Spain, and the two countries signed 16 contracts worth nearly 6 billion euros.At the same time, in order to rescue Spain, China will continue to purchase Spanish government bonds and some debts with low solvency. Following China's purchase of government bonds in Greece, Portugal and Spain, money from other Asian countries has also begun to show up in Europe. Japan thinks it is their turn to participate in the financial support of Europe... In recent years, China has increased a lot of investment in many countries in Europe, especially projects related to Greek ports - bridges in Serbia, highways in Poland, Romania energy grid and Portugal's offshore industry.

While China has strengthened its attraction to the Eurozone by fulfilling its commitment to the debt of some European countries, the "Central Empire" has given more loans to developing countries than the World Bank in the past two years, especially to meet their resource needs . In 2009 and 2010, two Chinese state-owned banks, the China Development Bank and the Export-Import Bank of China, secured 82 billion euros in aid, according to the Financial Times. China has surpassed the United States in buying eurozone debt and investing in Europe. In 2010, China's foreign investment reached almost 40 billion euros (an increase of 15%). In addition, China's rescue plan covers the world, mainly African countries or Sri Lanka (emergency rescue).

On another large scale, the same for the United States and Europe, these Western rulers all want Chinese money to settle in.In response to the massive economic crisis, some have requested financial support from China since 2008, anticipating that they will no longer be able to come out of the global economic and financial crisis alone. China's interest in the ancient continent adjusts European economies, especially those of some of the least developed countries.In addition, it also diversifies the investment of the world's first funder - China. For Europe, this is imminent.