China offers to buy Greek debt - Business - Al Jazeera English

China offers to buy Greek debt - Business - Al Jazeera English

Excerpt from article on English Al jazeera website about China buying Greece. And Zeus is in trouble in Hungary. Digging a hole through the center of the earth, the world is truly upside down.


Wen said during the visit that China will address European concerns over its investment rules and copyright violations, but wants the EU to relax remaining trade barriers with Beijing in return.

Speaking at Greece's parliament, he urged the EU to recognise China's "full market economy status" and relax restrictions on high-tech exports.

"I have repeatedly said that China supports a strong euro and will not reduce the number of European bond holdings from its foreign exchange reserves," he said.

Wen sought to ease European concern that overseas companies operating in China face licensing rule restraints that give local competitors an unfair advantage.

He said China would "strengthen dialogue" with the EU and was committed to continue "improving investment, confronting issues of intellectual copyright protection, expanding bilateral commerce and upgrading cooperation in technology."

Wen did not specify how much Greek debt China would be willing to buy or which Chinese entities would buy the bonds.

Chinese state entities have been generally conservative about investing in foreign financial markets and the Chinese government faces domestic political criticism over losses incurred by these entities during the global financial crisis.

China has a lot to gain from getting a foothold into Europe, Vagelis Agapitos, an economist in Athens specialising in investment, said.

"They [China] get a bargain in terms of buying into strategic industries, such as the port authorities, the railways and the logistic centre, which is important for the export of Chinese goods," Agapitos told Al Jazeera.

High borrowing cost

A senior Greek government official said Wen made clear his offer concerned buying bonds only when the country returned to markets.

Greece, which is currently funded through a 110 billion euro ($150 billion) EU/IMF bailout, is only issuing short-term treasury bills for the time being.

Since the true scale of its debt burden emerged late last year, investors have shunned its bonds
.