CHINESE PREMIER WEN JIABAO SAYS CHINA NEEDS TO HELP EUROPE
Posted by WARREN MOSLER on February 6th, 2012
Trojan horse
They just want to support their exports.
Premier Wen says China needs to help Europe – report
Feb 5 (Reuters) — Chinese Premier Wen Jiabao said that China needs to help Europe stabilise its markets due to strategic considerations in its relations with the region, the official China Securities Journal reported on Monday.
China also needs to keep its policy on imports and exports stable via more encouragements rather than restrictions, the newspaper quoted Wen as saying during a visit to China’s southern province of Guangdong earlier this month.
“Europe is now in a debt crisis,” Wen was quoted as saying. “We must consider our relations with Europe from strategic needs, maintaining our nation’s own interest.
“On the other hand, Europe is our largest export market. Europe is our biggest source of technological imports. Helping Europe stabilise its markets is thus helping ourselves.”
February 6th, 2012 at 11:23 am
Warren, if you were the Chinese government what would you do, considering that exports are real costs and imports – real benefits?
I guess every country would have to export, at least, as much as its needs for things it can’t produce itself, or raw materials it doesn’t possess?
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WARREN MOSLER Reply:
February 6th, 2012 at 1:43 pm
yes, I’d ‘restructure’ accordingly
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February 6th, 2012 at 11:43 am
Seems like “encouragement” has a slightly different meaning in Beijing than it does on Wall Street. I think it’s called “putting their money where their mouth is.”
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