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Europe has to rescue itself, without any help from Beijing
China seeks to strengthen its economy and fears having to pay other countries debts. But an economic catastrophe in Europe, spells big problems for Chinese exports, increasing domestic unemployment.
Beijing (AsiaNews / Agencies) - The eurozone debt crisis should be settled by Europeans themselves, the best contribution that China can offer is to take care to strengthen its economy, stated Liu Mingkang, former Chairman of the China Banking Regulatory Commission at a conference held yesterday in Beijing.
A day before in Honolulu, U.S. Treasury Secretary, Timothy Geithner, had asked to Asia to do more to stimulate global growth and in Europe for some time it has been hoped that Beijing would lend a hand by buying government bonds, making loans and investing in the continent.
"The best way China can help the global economy - said Liu Mingkang - is to do our work better at home, deepening reforms, reducing pollution, keeping a balanced economic growth."
Earlier this month, at the G20 summit, President Hu Jintao had also said that Europeans must solve the debt crisis on their own.
But according to some observers and scholars, in the end China will have to help Europe because the EU is China's largest trade partner in exports (20%). "A European economic catastrophe - said the economist and academic John Lee - is not in China’s best interests."
A reduction in exports would lead to an increase in unemployment in China. Officially, the unemployment rate in the country is around 4-5%, but it does not take account of the 150-200 million migrant workers who enter and leave the labor market, mainly used in the manufacturing industry, which serves not only the internal market but produces goods for many other world markets.