Tuesday, October 05, 2010

If China is acting in its own interests, why is it helping out Greece?

Trichet, makes the rather obvious point that China is acting in its own interests. He didn't think they would act out of charity did he?

But that leaves open the question, flagged up here and mentioned very briefly in one of the Sunday papers that China is backing up Greece.
Chinese Premier Wen Jiabao said on Sunday during a visit to Athens. "It is with joy that we see Greece emerging from the shadow of its debt crisis," Wen told the Greek parliament.

"The financial market has started to stabilise, the budget deficit is coming down, investor confidence is increasing and a growth prospect is emerging on the horizon."
As they said of Metternich when he died, "Why did he do that"?

Particularly when it was followed by this,
"With its foreign exchange reserves, China has already bought and intends to buy new Greek bonds ... China will undertake a great effort to support euro zone countries and Greece to overcome the crisis." And here's another from yet another story: "When Greece is in trouble, China is prepared to provide all the help it can." And Wen was also reported telling the same news conference that was "China's best friend in the European Union."
So there you have it, dear reader. China has a new best friend. (Bet that's news to struggling peasants spreading night soil on parched fields.) We don't know what all this fulsome talk portends, but we're going to keep our big ears to the ground. It seems obvious to us that someone has leaned on China(and Wen) to say some very nice things about Greece – and to indicate at the same time that China intends to ensure Greece's solvency.
Now I have no idea what is going on here, maybe China has taken a fancy to Pireaus harbour, I have no idea, but it is a little odd don't you think?

And do we really want China to be supporting us, in a sort of global realpolitik sort of way?

1 comment:

Manos said...

All good points, but if I may add one, it would be this: the Chinese are on the record as saying Greek bonds are even junkier than Westerners think: http://lolgreece.blogspot.com/2010/10/i-can-haz-chinese-vote-of-confidence.html