- CNTV English - CCTV News

Homepage > News > Biz >

NY Times: "China is Europe's lifeline"

11-02-2011 16:48 BJT

Beijing, Nov.2 (People's Daily Online) --The New York Times published an Op-Ed article on October 27, saying that China is Europe's lifeline.

The European banking system is drowning, and there is a possibility that the financial contagion will spread to Spain, Italy and even France. Europe cannot muster cash on its own in part because most countries are fiscally stretched.

The New York Times article said: "With a United States essentially sidelined because of its own economic and fiscal weakness, it is even less of a surprise that the SOS is going out to China."

The article continued, "Only China, with its 3 trillion U.S. dollars in reserves, is now able to provide the magnitude of relief that Europe desperately needs."

The article then voiced its opinion on what China should do to "bail out" Europe.

The article said that China can help Europe bilaterally by back-stopping the stability facility, or by guaranteeing to buy Italian and Spanish bonds at a rate that would keep these countries' finances sustainable or by providing the International Monetary Fund with additional money to lend to Europe.

Although the benefits are evident for Europe, the risks in this bilateral approach are considerable. It would expose China to the charge of becoming enmeshed in European politics.

The New York Times article said that helping Europe by strengthening the IMF and increasing its lending would avoid some of these political costs, especially since China would not be directly involved in European politics and problems.

"These demands would be legitimate and indeed be welcome for the world because they would tether China more firmly to, and create a stake for it in, the multilateral system," the article concluded.

Editor:Zhang Jianfeng |Source: People's Daily

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program