Chinese Prime Minister Wen Jiabao (溫家寶) is expected to declare support for Europe’s currency during a five-day visit to the continent, analysts said.
Although China has not revealed the exact agenda of Wen’s five-day tour of Hungary, Britain and Germany, its timing — coming as Europe hammers out a plan to battle the eurozone debt crisis — means that a political statement from Wen in support of the stability of the euro is highly likely.
Wen was to arrive in Britain yesterday afternoon from Budapest and will end his European visit in Berlin, where he is expected to discuss the debt crisis with German Chancellor Angela Merkel tomorrow.
Wen, who is seen as the most pro-Europe leader in the Chinese politburo, has voiced China’s willingness to prop up the region’s struggling economies, pledging to buy an unspecified amount of Greek government bonds during a visit to the debt-ridden country in October.
On Wednesday, Chinese Ambassador to Britain Liu Xiaoming (劉曉明) reaffirmed that by telling reporters that China would be a “long-term, responsible and active investor in the EU.”
A recent report by Standard Chartered Bank said that Beijing appeared to be buying fewer US assets — a possible sign that the country was pushing more money into European bond purchases.
China is seeking to diversify its foreign investment and reduce its reliance on US bonds in the long-term, but it is likely not ready to take the risk of buying significant amounts of Greek or Portuguese bonds, said Marie Diron, head of European macro forecaster at the UK-based consultancy Oxford Economics.
She said that any Chinese help in buying European debt is probably limited to a small amount of financing and will be more effective as a morale booster than a solution to Europe’s structural problems.
“I would expect some reassuring statements that would defuse some of the current tensions,” Diron said. “But the problems are mainly the eurozone’s own problems. The bulk of financing should and can only come from Europe.”
While in the UK, Wen will meet with British Prime Minister David Cameron for an annual dialogue and oversee the signing of a series of governmental and business contracts. The two leaders will also likely discuss the situation in Libya, where a NATO air campaign led by the UK and France against Muammar Qaddafi’s regime has reached a stalemate.
China has opposed the bombing campaign and abstained from a UN resolution in March calling for all necessary measures to protect Libyan civilians and has urged for a peaceful resolution of the conflict.
“Wen is expected to push for a ceasefire as soon as possible,” said Kerry Brown, head of the Asia program at London-based think-tank Chatham House.
Wen is scheduled to visit the MG car plant in Birmingham, England, today. MG, owned by the Shanghai Automotive Industry Corp, China’s largest carmaker, designs cars in the UK, but makes its car parts in China. The parts are assembled at the Birmingham plant.
He is also said to have planned a visit to William Shakespeare’s birthplace in Stratford-upon-Avon, although officials said the details were yet to be confirmed.
SEEKING CHANGE: A hospital worker said she did not vote in previous elections, but ‘now I can see that maybe my vote can change the system and the country’ Voting closed yesterday across the Solomon Islands in the south Pacific nation’s first general election since the government switched diplomatic allegiance from Taiwan to Beijing and struck a secret security pact that has raised fears of the Chinese navy gaining a foothold in the region. The Solomon Islands’ closer relationship with China and a troubled domestic economy weighed on voters’ minds as they cast their ballots. As many as 420,000 registered voters had their say across 50 national seats. For the first time, the national vote also coincided with elections for eight of the 10 local governments. Esther Maeluma cast her vote in the
Nearly half of China’s major cities are suffering “moderate to severe” levels of subsidence, putting millions of people at risk of flooding, especially as sea levels rise, according to a study of nationwide satellite data released yesterday. The authors of the paper, published by the journal Science, found that 45 percent of China’s urban land was sinking faster than 3mm per year, with 16 percent at more than 10mm per year, driven not only by declining water tables, but also the sheer weight of the built environment. With China’s urban population already in excess of 900 million people, “even a small portion
UNSETTLING IMAGES: The scene took place in front of TV crews covering the Trump trial, with a CNN anchor calling it an ‘emotional and unbelievably disturbing moment’ A man who doused himself in an accelerant and set himself on fire outside the courthouse where former US president Donald Trump is on trial has died, police said yesterday. The New York City Police Department (NYPD) said the man was declared dead by staff at an area hospital. The man was in Collect Pond Park at about 1:30pm on Friday when he took out pamphlets espousing conspiracy theories, tossed them around, then doused himself in an accelerant and set himself on fire, officials and witnesses said. A large number of police officers were nearby when it happened. Some officers and bystanders rushed
HYPOCRISY? The Chinese Ministry of Foreign Affairs yesterday asked whether Biden was talking about China or the US when he used the word ‘xenophobic’ US President Joe Biden on Wednesday called for a hike in steel tariffs on China, accusing Beijing of cheating as he spoke at a campaign event in Pennsylvania. Biden accused China of xenophobia, too, in a speech to union members in Pittsburgh. “They’re not competing, they’re cheating. They’re cheating and we’ve seen the damage here in America,” Biden said. Chinese steel companies “don’t need to worry about making a profit because the Chinese government is subsidizing them so heavily,” he said. Biden said he had called for the US Trade Representative to triple the tariff rates for Chinese steel and aluminum if Beijing was