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China welcomes EU debt deal

brussels bureau

China welcomes EU debt deal


China has welcomed the deal reached at the EU summit in Brussels aimed at tackling the bloc’s debt crisis. Increasingly seen as a key ally to boost the EU’s bailout fund, the EFSF, Beijing said it supported the measures taken by Europe’s leaders.

Ahead of the summit euronews spoke to China’s Deputy Foreign Minister Fu Ying.

“China has continued its efforts, including increasing imports from Europe. With almost all the European countries the imports are growing, with more investment coming into Europe and also with continued purchasing of eurobonds. We have never reduced the eurobonds in our hands”.

Hours after the EU debt deal was reached French President Nicolas Sarkozy held telephone talks with his Chinese counterpart Hu Jintao. Both agreed to cooperate closely at next week’s G20 summit in Cannes. Many hope China will ride to the rescue and provide crucial financial support.

“They have invested very heavily in US sovereign debt in the past. They have most of their investment in treasury bonds in the US, they want to diversify that. They are frightened of what the dollar supremacy can bring in this unstable period.”

Currently China has the world’s biggest portfolio of sovereign debt, mostly in US bonds, estimated at around 3.2 trillion dollars.

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