By FX Empire.com
Surprising Comments from Chinese Premier
Chinese Premier Wen Jiabao said in comments published on Sunday that China has a stake in helping euro zone countries get through their debt crisis,, pointing to Europe’s importance as a market and hinting at more possible support for beleaguered exporters. This is the first direct comments China was willing to assist other then a vague comment made last month to Chancellor Merkel. Wen did not make any commitments.
Wen’s remarks, reported by the official Xinhua news agency, built on comments he made during German Chancellor Angela Merkel’s recent visit to China, when he said Beijing was considering increasing its participation in rescue funds to address the European debt crisis.
This time, Wen urged skeptical Chinese citizens to understand that supporting Europe was in their own benefit
“Now Europe is facing a debt crisis and we must consider relations with Europe strategically to protect our national interests,” Wen said while visiting the export-dependent southern Chinese province of 
Guangdong on Saturday.
China, with its $3.2 trillion worth foreign exchange reserves, is often seen as a potential source for funds needed to bail out some European governments. The global worries about this prospect, the Chinese are shrewd businessman, always thinking tactics and the future, regardless of political parties, Chinese are careful planners and usually make the best deal they can for China.
The Chinese premier’s latest comments on the euro crisis again did not include any specific commitments to European economies. But he stressed the stake that China holds in assisting the euro crisis. Nor did he note in what form or when it would be discussed or possible.
“On the one hand, our biggest export market is Europe,” said Wen. “On the other hand, Europe is our biggest source for importing technology. From this perspective, helping to stabilize European markets in fact amounts to helping ourselves. We must make all quarters of society understand this point.”
At a joint media briefing in Beijing with Merkel on Thursday, Wen said China was studying how it might lend Europe further support. Tactics and Strategies, the Chinese way.
“China is also considering increasing its participation in the solution of the European debt crisis through the channels of the EFSF and ESM,” Wen said at that briefing.
The ESM, a 500-billion-euro ($650 billion) permanent bailout fund due to become operational in July, is expected to replace the EFSF, a temporary fund that has been used to bail out Ireland and Portugal and will help in the second Greek package.
China has repeatedly said it supports a stable euro, and according to most estimates, China has about a quarter of its foreign exchange reserves in euro assets.
But Beijing has consistently been reluctant to make specific promises about any contributions to the rescue funds. In the long run, China will help, it most likely will not be in public way, Chinese also like discreet affairs
China’s exports to advanced economies, including Europe, have been hit by their continued woes, and Wen said his country’s manufacturers would have to adapt and open up new markets. He also hinted that more support might come.
“Import and export policy must maintain overall stability,” said Wen in a discussion with Guangdong manufacturers, according to Xinhua.
“If there must be adjustments, it should be more in the form of encouragement than restrictions,” said Wen. Wen’s support will most assuredly buy China some favored nation status, and other trade concession which will benefit the Chinese long into the future. Perhaps if our politicians thought like this, Europe nor the US would be in as much debt or having to deal with continued crisis after crisis.
Originally posted here
