The European tour that the Chinese Vice Premier Li Keqiang, began Tuesday in Spain, with stops in Germany and the UK, has shown interest in the largest economy by strengthening its already good relations with the continent. Beijing has come with the book open but also demands the bag. The trip comes at a sensitive time, with Europe hurt by the crisis, the euro markets punished and scrambled.Li, which is expected to rise to prime minister in March 2013, has launched a clear message of support to the European economy. "China's door will always remain open to the world and China's development will provide huge opportunities for collaboration for all European countries," he wrote in a column published Monday in the newspaper.
"China's support to the financial stabilization measures, the EU and assistance to individual countries to address the crisis of sovereign debt help promote economic recovery," said the German newspaper Süddeutsche Zeitung. The events followed the words. Li announced in Madrid the readiness of his country so much debt to buy Spanish and Portuguese and Greek together, ie about 6,000 million euros.
An operation that is part of China's desire to diversify their investments, especially dependent on the U.S.. China has the largest foreign reserves of the world -2.64 billion dollars (two billion euros) - a large part of them-some 907,000 million dollars in U.S. Treasuries. In addition, during the stay of Li in Spain, were signed contracts between the two countries worth of 5,650 million euros.
The Chinese confidence vote is not free. Analysts said Europe's economy will stabilize in the interest of China as the EU is the destination of its exports, which largely depends on its economy. China also is concerned about what it sees as the growing trade protectionism in Europe, and wants the EU to recognize it as a market economy.
This designation would make Beijing less vulnerable to anti-dumping procedures under the rules of the World Trade Organization. Also intended to be lifted export restrictions to China of high-tech products and an end to the arms embargo because of the Tiananmen massacre in 1989. The hunger crisis and European foreign direct investment to create jobs offered at the same time, an ideal setting for Chinese multinationals, which in recent years have received clear instructions from the Government for enhancing its international presence and are located in abroad.
Li Keqiang is offering China's financial muscle to help Europe in exchange for better economic relations, as well as technology and more open markets. Other political demands, such as those related to European criticism of human rights situation in China or support the Tibetan leader Dalai Lama, are not so explicit, but are in the package.
Of course not always going to resonate. Yesterday German Chancellor Angela Merkel, Li raised the issue of human rights in the interview he argued, before the Chinese leader met with representatives from several companies. In addition, the German Government has called on China to review restrictions on exports of rare minerals used in high technology products.
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