China Supports Stable Euro, Strong EU Ties, Wen Says

Discussion in 'Wall St. News' started by ASusilovic, Oct 3, 2010.

  1. Oct. 3 (Bloomberg) -- China supports a stable euro and won’t reduce its holdings of European bonds, underlining its strengthening ties with the European Union, Premier Wen Jiabao told Greek lawmakers in Athens.

    “From the outbreak of the sovereign debt crisis in certain European countries at the start of this year, I have repeatedly voiced China’s support of measures adopted by the European Union and International Monetary Fund,” said Wen, who began a tour of European capitals yesterday. “China supports a steady euro and it will not be reducing its European bond holdings.”

    The development of relations between the EU and China is “truly to the benefit of both,” Wen said. “We are passengers in the same boat.” The premier said he hopes to improve the domestic investment climate in China and hopes the EU eases restrictions on high-tech exports and rejects protectionism.

    China is weakening USD in every possible way, before a revaluation of the yuan is even discussible !
  2. That is a stupid move if that is what they are doing. It works against them. They need a strong USD not a weak one.
  3. It's not about weakening the USD... It's all about diversification for the Chinese (they don't seem to be too happy about QE2).