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Eurozone crisis: 3 reasons why China might help bail out Europe
China is the world’s biggest creditor, with foreign exchange reserves of around $3.2 trillion. Europe would like Beijing to use some of that money to lend a hand and help bail out the eurozone. China has stressed it will not be a savior to Europe, and there are a reasons it won't.
However, there are a few reasons China could change course and come to the rescue. Here are three:
1. The EU is China’s biggest trading partner
The European Union is China’s biggest trading partner.
If the bloc goes belly-up, there goes the market for 20 percent of China’s exports – a tough blow for an economy still heavily reliant on its sales abroad. Plus, if the eurozone mess leads to a deep European recession or a systemic crisis, the whole world could follow Greece down the drain. China may be the global economy’s locomotive, but if all the wagons fell off the viaduct, they would pull the engine with them.
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