China Reiterates Position on EFSF/EU

Unfortunately I for some reason can't link to or pull up FT articles, so I have to go to other sources.

Today's latest from China comes in the form of an FT Op-Ed by the former member of the PBoC monetary committee (and just because he is a "former member", government officials don't speak out of turn in China).

Beijing will not ride to eurozone’s rescue


"Beijing has repeatedly expressed its wish to offer “a helping hand” to Europe. Eurozone countries, however, have to understand that they will have to save themselves. Expectations of a “red knight” riding to the rescue are sorely misplaced."


"As Wen Jiabao, premier, pointed out at the 2011 Dalian World Economic Forum, the European Union has first to put its house in order. When countries and political parties in the eurozone squabble among themselves over how to proceed, how can China support any hastily assembled rescue packages?"


"From the perspective of domestic politics, bailing out EU countries with Chinese money is hard for the Chinese people to accept. The tens of millions of elderly Chinese will demand to know why they should pay for rich Europeans to retire early when they do not have a decent pension system of their own. Unlike America, which has accumulated huge foreign debts, the eurozone as a whole has a healthy external position. This means that eurozone countries can solve their sovereign debt crisis with their own money, as long as Germany and some northern European countries are prepared to foot the bill. The Chinese people will ask: if Germans do not want to contribute more money, why should China bother?"


" there are indirect ways to help. Beijing should allow the renminbi to appreciate against the euro and give European companies greater access to Chinese markets – which, of course, needs to be reciprocated. An improved eurozone current account through trade as well as Chinese investment into Europe will free up funding within Europe and allow more savings to be directed towards governments."


"To be clear, China should not give the impression it is taking advantage of the misfortune of others. But, for Beijing, financial decisions should be based on financial considerations. Do not blame it if China’s help is short of your expectations. China has never claimed it can save you from the debt dragon – and, on its own, it will not."