"There are no ongoing negotiations with China" for the strengthening of the European State Rescue Fund (EFSF). This was assured by Klaus Regling himself, director of the Fund, who is visiting Beijing today. Regling justified his visit by calling it "a normal consultation in the preliminary phase", yet during the last summit in Brussels it was decided to enhance the capacity of the EFSF also with the contribution of emerging countries, naturally including China.
According to some rumors published by the Financial Timesmoreover, China is already ready to invest between 50 and 100 billion dollars in the Fund, but on condition that the operation has strong guarantees and that European leaders refrain from criticizing Chinese policy.
"It is in China's interest to help Europe, because it is our main trading partner, but the main concern of the Chinese government is how to explain this decision to our people - Li Daokui, a member of the policy committee, explained to the British newspaper monetary policy of the Chinese central bank – the last thing China wants is to throw away the country's wealth and be seen only as a source of easy money”.
