China plays hard ball - European Council of Foreign Relations

The recent appearance of China as potential saviour of the Eurozone is put in doubt by Francois Godement at the European Council of Foreign Relations.

Asserting political conditions in return for help is a risky game to play for China but Europe may not be united enough to withstand it, argues Godement.

Despite the complete lack of transparency and the vague statements that are meant to tease European leaders into dropping anti-dumping charges against China in return for help Godement points out that the recent record of Chinese activity may offer a different explanation of Chinese behaviour.

Chinese funds are indeed shopping for European assets instead of government bonds. "Beijing?s ?support? and ?friendship? have actually taken the form of asset buying in sectors evidently designed to benefit future trade and the interests of Chinese enterprises. Container ports and terminals, airports and logistical or industrial assembly bases are targeted, besides firms with interesting technological or marketing content."

There is little indication, or indeed motivation for China to support ailing European countries instead of core economies.

And above all, we lack any specifics - we have to rely of Mr Wen's statement that are designed to remain vague on purpose.

Read the commentary under the link