http://online.wsj.com/article/BT-CO-20110920-700819.html China 'Disappointed' In EU On Market Status But No Link To Possible Aid -- China says extremely disappointed in E.U. for not recognizing its market economy status -- China not linking this to any possible assistance to Europe in sovereign debt crisis (Recasts first paragraph, adds comments in third and fourth paragraphs, background.) By Owen Fletcher Of DOW JONES NEWSWIRES BEIJING (Dow Jones)--China is extremely disappointed that the European Union hasn't recognized its market economy status but there is no connection between this and aid to Europe in its struggle with sovereign debt problems, a Ministry of Commerce spokesman said Tuesday. "Recognition of China's market economy status and supporting Europe in fighting the debt crisis are two issues of a separate character," ministry spokesman Shen Danyang told a regular news briefing. "I don't believe there is any definite relationship between the two." But the spokesman suggested Beijing is losing patience with the E.U. and other key trading partners that insist China still maintains some aspects of a state-planned economy despite its years of market reforms. "Through 30 years of reform and opening, China has completed...a transition from a planned economy to a market economy. But the E.U. so far still does not recognize China's full market economy status. China is extremely disappointed about this." Market economy status is a technical designation in international trade law that would grant China more favorable terms in certain trade disputes, allowing it to more easily refute dumping and other unfair pricing allegations. State-set pricing in some sectors of the economy and special financial support for key state companies are areas that have been singled out as stumbling blocks to recognition of full market economy status. Global markets have been looking to China, with its $3.2 trillion in foreign exchange reserves, to come to the rescue of the E.U. by buying sovereign bonds or pumping fresh investment funds into its weaker economies, most notably Greece. China has repeatedly voiced moral support for Europe but has been coy about making any specific, public commitment to offering financial support. Last week, Chinese Premier Wen Jiabao said that Beijing would consider investing more in European assets. In the same address at the World Economic Forum in the northeastern Chinese city of Dalian, he also said that Europe must take "bold steps," most particularly recognizing China's market economy status. Although Wen didn't explicitly link the two, some observers concluded that he was articulating a precondition for aid. A commentary by the state-run Xinhua News Agency reinforced those conclusions by taking up the market status issue, saying "it is a pity that the E.U. still shows no sincerity" on the issue of recognizing China's market economy status. China has also noted that it needs other assurances before it can boost assistance for Europe. Last week, a foreign ministry spokeswoman said China has confidence in the stability of Europe and the euro but hopes that the E.U. can take effective measures to ensure the safety of Chinese investments. -By Owen Fletcher, Dow Jones Newswires; (8610) 8400-7702; owen.fletcher@dowjones.com
The EU is China's top trading partner, while China is the EU's second biggest. So whether the EU recognizes China's status or not does not have a big impact on China-EU economic cooperation.
China is a currency manipulator and an industrial thief . They are the main cause of the current economic crisis in western economies due to job theft. Simply not playing by the rules and never will unless being forced. Clearly European nations and the US is moving toward disciplining the Chinese.
China might give aid in Euro crisis and west is not comfortable with this, see following links: http://www.theaustralian.com.au/new...d-eu-asks-itself/story-e6frg6so-1226179915880 http://www.huffingtonpost.co.uk/2011/10/27/eurozone-crisis-china-investment_n_1048678.html If they give aid, they might ask something in return and what can it be, maybe to be the next superpower? :-/
Yes, but at least we can export our inflation to them. Thats the good thing about when a creditor nation pegs their currency to yours. You can print like hell, and barely see prices rise because you have another 1.6 billion people eatting your inflation.
No wonder why financial crisis happened when someone who never learn from mistake...Look at USA and Europe...it is debt problem..not CHINA,dude !!! It is those big fund manager/ banker man who borrow money to make big bucks for themselve while other average peoples suffer the consequence....It is not one day event, it has been happening for past decade...China is a currency manipulator?? then please think how china become currency manipulator or how could they become ?...We are talking "Global" now..it is impossible to control the such mega size market from one country!! Wake Up man!!