Increasing direct investment or China of the European Union rescue strategy
After eight hours of marathon negotiations, the European Union summit finally solved the Greek debt crisis a package deal.
In the solution through the before between central Europe frequent interaction between, the European Union is put down the initiative to these China for help. However, China has to help the eu is certain necessary, but must adhere to the basic principle of strengths. In many options for assistance programs, should pay more attention to intensify the eu direct investment. And the direct purchase crisis countries than bonds, this is probably a better plan.
According to the latest reached agreements, the eu decided to European financial stability tool scale leveraged to expand the 1 trillion euros to aid in the eurozone debt crisis sovereignty. But the 1 trillion euros is not ready, need to large-scale financing. But the reality is, the European Union countries generally lack the money to the bank. Just over a month ago, the European baseball hats central bank, the federal reserve, the Swiss central bank, the bank of Japan and bank of England announced before the end of the year for European Banks into dollars with liquidity.
So, as the world's second largest economy, and has more than $30000 of China's foreign exchange reserves will become the European struggled to get the 'borrow money' object. According to the concerned scholar measurements, in China's huge foreign exchange reserves, about 1.2 trillion dollars in the United States sovereign debt, has about $800 billion in the eu sovereign debt. Other investment again eliminate, China at least several hundred billion dollars and the store can use. British media said, in Mr Sarkozy and the thunder of the green lobby, the Chinese side may as' the European financial stability fund 'investment about 70 billion euros.
There is no doubt that, in the European debt crisis to make the necessary assistance, accord with China's economic strategy. At present, the European Union is China's largest trading partner, both sides of the trade volume last year to $360 billion.
But how to aid is a question. On the surface, China's purchases of bonds the eu, lending money debt crisis countries, is the most direct and may immediate answer. But this approach also contains a huge risk. Because the eu's main aid, such as France and Germany would itself, and the United States is also ZiGuBuXia, such as Greece and recipient domestic economy situation didn't fare any better, at present the tightening of fiscal and most voters by the strong opposition, the prospect of the future is not clear.
Therefore, might consider using foreign exchange reserves to increase the eu's direct investment, in order to reduce the debt held too much the risks. Increasing direct investment can also bring benefits include:
On the one hand can help to alleviate the eu capital shortages. By the end of last year, China directly set up in the European Union of investment enterprise Discount sunglasses nearly 1600, stock of $12.5 billion.
On the other hand, there are beneficial to increase the eu's employment. The European Union's unemployment rate remains high, chinese-invested enterprises entering, the will to expand the eu employment brings new power. At present, Chinese enterprises employ Europe less than 40000 employees, the potential is enormous.
To the European Union expanded direct investment, is also the Chinese enterprise to speed up 'go out' strategy of an opportunity. Direct investment can make China enterprise around the host country of the many barriers to trade, reduce the bilateral trade friction. In addition, China can also be bold to issue aid conditions, that China's market economy status, expand the energy and high-tech areas etc., for Chinese enterprise to provide more into the opportunity.
In short, more use of the eu's direct investment, can receive multiple effect, was a 'more than an arrow carved' good solution.
Of course, the Chinese enterprise in the eu's direct investment to expand, but also need to social security systems. In the process, the Chinese government should speed up the talks with the European Union and communication, for China in the European Union investment build a more relaxed and more equal environment.
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