Sarkozy to Seek China Aid as EU Expands Rescue Fund

[Chinese Century]

china should demand more than market economy status.

china should demand:

1) market economy status.
2) demand much higher voting power at IMF and world bank and demand overall reform of IMF, world bank and WTO.
3) removal of the rule that says IMF and world bank head must be european or american.
4) chinese RMB included in SDR basket.
5) lifting of the arms sales ban.
6) lifting all barriers and stop discrimination for chinese companies investing in europe.
7) transfer of any technology to china at china's request.
8) scrapping the european made rule that says hong kong and macau will have autonomy until 2050 thus china can fully rule over hong kong and macau with chinese laws.
9) demand a portion of payments in gold bullion.
10) secure any natural resources that europe has at bargain prices.
11) no meeting with dalai lama.
12) fully support china at any global event.

china should squeeze every drop of water from europe.

dont let these european colonialist dogs get away on easy terms, dry hump these rats until they sell their soul to china.
china should NEVER forget how these european rats humiliated china in the concessions in the 19th century and early 20th century.

 

[ChinaToday]

China holds Europe to ransom over £62bn bailout deal

Beijing plays down expectations of immediate cash injection

Eurozone leaders were left sweating last night after China played down expectations that it would quickly make a much-needed cash injection to the EU bailout fund.


The chief executive of the European Financial Stability Facility (EFSF), Klaus Regling, was in Beijing yesterday with the hope of coaxing a speedy investment from the world's second-largest economy. But, despite hopes that the opportunity to take a leading role in managing global finances would prove a powerful incentive for Beijing, European observers were prepared for the Chinese to exact a heavy price in return for providing up to €70bn (£62bn) to the fund.

After meetings with senior officials, Mr Regling told reporters that a quick deal was unlikely. Meanwhile, the Chinese Deputy Finance Minister Zhu Guangyao said China would need more details of the planned boost to the EFSF before it would commit to any deal. "We must wait for the technical structure to be very clear and have serious and specialised discussions before making a decision on investment," Mr Zhu told a news conference in Beijing.

Mr Regling was nonetheless bullish about the prospects of China ultimately putting in the cash that the eurozone countries so urgently want for the fund, which was set up in May 2010 and is set to be boosted to £880bn under the plan.

China is a likely candidate to provide a share of that money. Europe is a key export market, and Beijing has cash to spend. With a war chest of £2 trillion, it has the biggest foreign exchange reserves in the world and is keen for vehicles to invest its funds in.

"We all know China has a particular need to invest surpluses," said Mr Regling. He said a quick deal was unlikely but he was "optimistic we will have a longer-term relationship".

He said that China had not made any conditions about how it would buy EFSF bonds and that China had been a "good and loyal" buyer so far.

In a sign of the importance of Chinese participation, the French President, Nicolas Sarkozy, spoke to President Hu Jintao by telephone this week. "China hopes all these measures will help stabilise the European financial market and conquer the current difficulties and promote economic recovery and development," Mr Hu said, quoted on China's state television.

Mr Sarkozy said the Chinese leader had expressed his relief that Europe had announced a deal to tackle a debt crisis that otherwise could have taken down the entire world economy.

"China has a major role to play. China must deploy more resources to stimulate the world economy. If they decide to invest in the euro rather than the dollar, why reject that? Why not accept that the Chinese place their trust in the eurozone?" he said.

But Mr Hu made no explicit commitment of Chinese help. And speculation was rife yesterday that it would not provide Europe with the necessary funds without strong incentives.

Some analysts suggested that China could channel money through the International Monetary Fund because it would want to see stringent conditions over the extent of eurozone fiscal deficits applied to its investment. They also pointed to Beijing's irritation at previous European criticism of its human rights record and suggested that a less interventionist approach from the EU could be a quid pro quo of any deal.

A Chinese official implied earlier this week that the Chinese investment would not come easily.

"The chief concern of the Chinese government is how to explain this decision to our own people," Li Daokui, a monetary policy adviser to China's central bank, told the Financial Times. "The last thing China wants is to throw away the country's wealth."

While China's current holdings of euro bonds are not known, they are said to be focused on Germany and France, and much smaller than its holdings of US Treasury bonds. Some analysts reckon probably around one-quarter of its holdings are in euro assets.

China holds Europe to ransom over £62bn bailout deal - Europe, World - The Independent

 

[Chinese Century]

China holds Europe to ransom over £62bn bailout deal

Beijing plays down expectations of immediate cash injection

Eurozone leaders were left sweating last night after China played down expectations that it would quickly make a much-needed cash injection to the EU bailout fund.


The chief executive of the European Financial Stability Facility (EFSF), Klaus Regling, was in Beijing yesterday with the hope of coaxing a speedy investment from the world's second-largest economy. But, despite hopes that the opportunity to take a leading role in managing global finances would prove a powerful incentive for Beijing, European observers were prepared for the Chinese to exact a heavy price in return for providing up to €70bn (£62bn) to the fund.

After meetings with senior officials, Mr Regling told reporters that a quick deal was unlikely. Meanwhile, the Chinese Deputy Finance Minister Zhu Guangyao said China would need more details of the planned boost to the EFSF before it would commit to any deal. "We must wait for the technical structure to be very clear and have serious and specialised discussions before making a decision on investment," Mr Zhu told a news conference in Beijing.

Mr Regling was nonetheless bullish about the prospects of China ultimately putting in the cash that the eurozone countries so urgently want for the fund, which was set up in May 2010 and is set to be boosted to £880bn under the plan.

China is a likely candidate to provide a share of that money. Europe is a key export market, and Beijing has cash to spend. With a war chest of £2 trillion, it has the biggest foreign exchange reserves in the world and is keen for vehicles to invest its funds in.

"We all know China has a particular need to invest surpluses," said Mr Regling. He said a quick deal was unlikely but he was "optimistic we will have a longer-term relationship".

He said that China had not made any conditions about how it would buy EFSF bonds and that China had been a "good and loyal" buyer so far.

In a sign of the importance of Chinese participation, the French President, Nicolas Sarkozy, spoke to President Hu Jintao by telephone this week. "China hopes all these measures will help stabilise the European financial market and conquer the current difficulties and promote economic recovery and development," Mr Hu said, quoted on China's state television.

Mr Sarkozy said the Chinese leader had expressed his relief that Europe had announced a deal to tackle a debt crisis that otherwise could have taken down the entire world economy.

"China has a major role to play. China must deploy more resources to stimulate the world economy. If they decide to invest in the euro rather than the dollar, why reject that? Why not accept that the Chinese place their trust in the eurozone?" he said.

But Mr Hu made no explicit commitment of Chinese help. And speculation was rife yesterday that it would not provide Europe with the necessary funds without strong incentives.

Some analysts suggested that China could channel money through the International Monetary Fund because it would want to see stringent conditions over the extent of eurozone fiscal deficits applied to its investment. They also pointed to Beijing's irritation at previous European criticism of its human rights record and suggested that a less interventionist approach from the EU could be a quid pro quo of any deal.

A Chinese official implied earlier this week that the Chinese investment would not come easily.

"The chief concern of the Chinese government is how to explain this decision to our own people," Li Daokui, a monetary policy adviser to China's central bank, told the Financial Times. "The last thing China wants is to throw away the country's wealth."

While China's current holdings of euro bonds are not known, they are said to be focused on Germany and France, and much smaller than its holdings of US Treasury bonds. Some analysts reckon probably around one-quarter of its holdings are in euro assets.

China holds Europe to ransom over £62bn bailout deal - Europe, World - The Independent

as i said, chinese leaders better not give away china's wealth for nothing.
this deal better be favoured massively towards china.

the europeans need china.
china should be the rule maker, not the rule taker.

 

[Sasquatch]

China should tell the EU to lift the arms embargo if they need our help ? We will Milk Europe like how Europe milked the world plundering everything !

 

[Chinese Century]

China should tell the EU to lift the arms embargo if they need our help ? We will Milk Europe like how Europe milked the world plundering everything !

exactly!

not a single cent of chinese hard earned wealth will be given unless there are major concesssions.

 

[Sasquatch]

exactly!

not a single cent of chinese hard earned wealth will be given unless there are major concesssions.

Revenge is sweet

 

[Chinese-Dragon]

China should tell the EU to lift the arms embargo if they need our help ? We will Milk Europe like how Europe milked the world plundering everything !

We have to be both subtle and patient for that to work.

This is only the first major deal here. There will be many others.

 

[Sasquatch]

 

[Obambam]

We have to be both subtle and patient for that to work.

This is only the first major deal here. There will be many others.

I agree with you, we should secure contracts ensuring further deals along the line. However there are times when you must take on the opportunity and take maximum advantage of it as chances like this doesn't always come around let alone very often.
Afterall it is them asking us for help, so we have every right to ensure that our loans, investments and future deals are secured.

 

[Farooq]

They should offer all of their valuable assets for the exchange of our bailout money.

Otherwise, there is no free candy in this world, especially with those hostile western nations.

Well said brother!

 

[idune]

First of all, investment proposal EU is making through EFSF will confine China's benefit only to interest earning. That is throw away price for Chinese money. Because, we have seen in last couple of days EU pushed banks holding Greece debt to take 50% loss on their investment. Given even larger disaster Italy, France still to be unfolded, future investors can even see their investment completely disappear. I hope China does not fall for that.

Second, value of Euro and survival of it is very much in question. No matter who says it, no country can give assurance of investment value. Ultimately, US and EU will resort to NATO firepower to threat anyone try to demand their money back or try to collect assured asset.

So best option for any investment would be tangible assets - industries, technology etc. Bank, real estate and bonds are toxic. But EU is not desperate enough to give out industries and tech yet. China has to wait little longer for that desperation point.

 

[Chinese-Dragon]

So best option for any investment would be tangible assets - industries, technology etc. Bank, real estate and bonds are toxic. But EU is not desperate enough to give out industries and tech yet. China has to wait little longer for that desperation point.

We can wait as long as it takes.

 

[Farooq]

European Union wants money? They're going to have to start selling technologies then.

- NH90 Helicopter
- SAMPSON radar
- MT-30 gas turbine
- WR-21 gas turbine
- Electric ship propulsion

Anything else I've missed?

In my humble opinion, I would wait for the Eurotrash to become more desperate so they will have no choice but to sell their technology to China. It would be good to see our Chinese brothers will all the advantages.

---------- Post added at 06:33 AM ---------- Previous post was at 06:31 AM ----------

Who does the pig represent?

 

[Sasquatch]

In my humble opinion I would wait for the Eurotrash to become more desperate so they will have to sell their technology to China. It would be good to see our Chinese brothers will all the advantages in this case.

Embargo has helped China build it's own Military Industry In a way it's strengthen us.

 

[Sasquatch]

In my humble opinion, I would wait for the Eurotrash to become more desperate so they will have no choice but to sell their technology to China. It would be good to see our Chinese brothers will all the advantages.

---------- Post added at 06:33 AM ---------- Previous post was at 06:31 AM ----------



Who does the pig represent?

Greece and EU.