October 5th, 2010
07:18 AM GMT
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(CNN) – The visit of Chinese Premier Wen Jiabao to Greece was a welcome shot in the arm just before Athens rolled out its 2011 budget.

Greece, the poster-child for the wave of austerity sweeping the European Union, must claw back its budget deficit in the wake of a nearly $150 billion bailout earlier this year. Wen pledged $5 billion in financing for the Greek shipping industry and vowed to continue to buy Greek debt bonds.

Greece finds a friend in China?

But the love in Athens isn’t expected to last in Brussels, where the China-European Union summit starts on Wednesday. The EU has the uphill task of trying to convince China to let the value of its currency rise.

Wen’s position on the topic was made clear Monday at a speech opening the Asia-Europe Meeting ahead of the EU summit.

"We should intensify macroeconomic policy coordination, manage with caution the timing and pace of an exit strategy from economic stimulus, and keep the exchange rates of major reserve currencies relatively stable," Wen said.

Collectively, the European Union is Beijing’s largest trading partner; China exported $293 billion to Europe in 2009. Appreciation of the yuan would undercut profits of Chinese products sold in the EU and hamper China’s growth, which government officials say needs to hover near 8 percent a year to maintain employment.

The Eurozone finance minister’s group – like lawmakers in the U.S. – say China’s currency is undervalued. Fresh in the minds of the EU is the precipitous drop  of the euro in the wake of the sovereign debt crisis triggered by Greece.

On one hand, Greece and other nations are looking to China for investment and support of Eurozone bond markets. On the other hand, European exports are being hit by a weak yuan.  The dance between economic courtship and currency hardball will be interesting to watch as Wen continues his weeklong visit to Europe and Turkey.



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soundoff (40 Responses)
  1. 4AllJustice

    So... The chinese "promisse" will buy debt bounds as long as they are allowed to keep cheating the currency markets on a large scale and dumping their cheap stuff allover . Thats so funny...
    These comunist Dictatorship is really shameless, i sincerly hope the EU doenst give in to smooth talking from these criminals, and can follow U.S example and tax tha hell out this commie unlawful Human Rigths trampling criminal bastards.

    October 5, 2010 at 8:09 am |
  2. dayo

    china building the exact way the west was built, do not cry fool play now.

    October 5, 2010 at 9:58 am |
  3. Acropolis

    A new Marshall Plan...

    October 5, 2010 at 10:01 am |
  4. mjs

    Never trust a greek.

    October 5, 2010 at 10:33 am |
  5. Dyna12

    Who can decide the exact currency level ? Only those applying floating EX rate have the means to manipulate currency. The Yuan had been fixed to the dollar since 1994 and from then to now only appreciating. The Euro varied from 1.5 to 1.2 in the past year and now stands at 1.37, who can tell what is the right level. US and Euro, alike, tend to manipulte their currency whenever beneficial to them, while the Yuan is passively fixed.
    The US and Euro may need to think more about their structural problems.
    Why some countries, like German,.Japn, Korea, run trade surplus with China while others running deficit. It will very much depend on the people's attitude toward working and discipline. The loser only blame others, and behave so irrationally.

    October 5, 2010 at 11:24 am |
  6. peter

    4AllJustice,
    if China doesn't provide you the cheaf stuff, a bankrupt moron like you will have starved to death long time ago.

    October 5, 2010 at 11:49 am |
  7. sbuxguy

    4alljustice – the best part is if they didn't purchase or help out, you'd be leaving a comment about how they are leaving other countries out to dry... Just because someone doesn't follow the US example doesn't mean its wrong. On a side note – you may hate the "cheap stuff" they export, but the main importer is USA... odd! If you didn't buy that "crap", there wouldn't be a problem now would there?

    October 5, 2010 at 12:20 pm |
  8. greek4you

    never trust a turk

    October 5, 2010 at 1:13 pm |
  9. 4AllJustice

    peter, i bet u wished to be as "bankrupetd" as i am but that is beside the point, just go to wall mark or wherever ur ignorant red neck goes shopping and tell what the heck is not made in china? So where are the Jobs going? Also do you believe in open the FREE MARKET to a country the size of a continent where there is no personal freedom whatsoever? do you think that is sustainable? never mind their cheap labor, what about the envoirent, what about human rigths? look at the bigger picture peabrain.

    October 5, 2010 at 2:42 pm |
  10. 4AllJustice

    sbuxguy, problem is that in the name of quick profit we western markets opened wide to Chinese Import with very few restrictions and now we all are paying for it, that was a political decision made by Clinton term and Europe folowed suit. So we all pay for it. China is a Vicious dictatorship they cannot be trusted whatsoever, they are like the mob in charge of a a continent. we played with fire and now are burning. The US is starting to understand the mistake. China is far from the booming economy they boost they are all the time. FOR REAL INFO about china Check Out the epoch times news website.

    October 5, 2010 at 2:49 pm |
  11. DumbAmerican

    Go China!

    October 5, 2010 at 5:44 pm |
  12. george

    Never trust Greek. In Greece have everything except Greeks. Albanians, Turks, Vlahos, Pomaks, gipsy, Macedonians, Bulgarian est. Greetings from Bulgaria

    October 5, 2010 at 11:10 pm |
  13. persuefreedom

    It sounds like a joke!

    October 6, 2010 at 3:17 am |
  14. persuefreedom

    Pathenon Temple,wow!

    October 6, 2010 at 3:19 am |
  15. peter

    4AllJustice,
    If you are looking for a manufacturing job, move to india, vietnam, indonesia or other third world countries. Don't you know that all the developed countries, including the USA went through the same industrial process of pollution and exploitation of cheap labor? If you are looking for human rights, perhaps you can find it when you go to heaven or hell, not here on earth!!!!

    October 6, 2010 at 10:23 am |
  16. feather

    4AllJustice
    you are really stupid. ONLY CHINA CAN SAVE THE WORLD ECONOMIC CRISIS.

    October 6, 2010 at 1:57 pm |
  17. schweinsteiger

    what a stupid topic. Europe will surrender to the China? They couts China?

    October 6, 2010 at 4:00 pm |
  18. schweinsteiger

    So China will continue dumping their low quality products to European market.

    October 6, 2010 at 4:01 pm |
  19. 2AllPrejudice

    4AllJustice, dear you, I guess you'r a hater, I also wonder how much do you really know about this 'comunist Dictatorship' since you even misspelled the communist... what a shame huh?! Funny is it?

    While you'r whining, can't you "promisse" never gonna buy the 'Cheap stuff'? And thx to let me knowing what's you and/or all the rest of haters socalled 'Human Rights'! I can really see the future of your country!
    From reading your commons, once again it proves 'an uneducated would mostly gives such an amused opinion'.

    P.S. Suggest you to read a bit more before the prejudice and justice. Being arrogant not only needs guts but also requires knowledge.

    Have a good evening!

    October 6, 2010 at 8:12 pm |
  20. Jacob Schonberg

    China is now strong enough to play by the same rules as the rest of the world. They can let their currency be regulated bu the market the same way as everybody else. If they do not want that then some tarifs can be put on the goods they produce. Many greetings Jacob

    October 7, 2010 at 7:11 am |
  21. 4AIlJustice

    I shine the shoes of Communist Elites in China for a living.

    October 7, 2010 at 7:55 pm |
  22. kita

    China is the worst. In Japan,there is a big problem. The problem is that China says Senkaku-the name of island-is Chinese territory despite China knows Senkaku is clearly Japanese territory. Senkaku is now uninhabited island, but Japanese were working at factoy of dried bonito from 1880 to 1940. They ignore many evidence we have. China made forge,too. I have some maps. The maps which were published by China in 1905 and1967, Senkaku is Japanese territory. But Senkaku suddenly disappears on Chinese maps in 1972, 1987. They write Chinese name "Diaoyu "instead. I heard China started teaching" Diaoyu is Chinese territory" at shool about 35 years ago .The possibillity of oil was found in 1970'. Chinese are already all brainwashed. Many Chinese think Japan took "Diaoyu" at the war so called Sino-Japanese war1894-1895. But, there were already japanese living in Senkaku. Greece,Be careful.!

    October 7, 2010 at 9:22 pm |
  23. Alan.Reeves

    I think this is good for china.but china must take precautions against Greek and Europe.

    October 8, 2010 at 6:44 am |
  24. facts!!!!

    4AllJustice,
    u dumb nut!!! if china raise the currency the US suffers!!! has the US increased the interest rate in how many years???? the reserve bank is banking on china not to so much increase the currency peg otherwise they have to increase interest rates!!! thus u numbskull..... your mortgage u have to pay will increase.... your credit card interest rate increases and other interest rates also increase!!! so if u want that!!! so be it!!!! u pathetic idiot will suffer in the end!!! plus it was western nations who went to china set up there companies and demanded the products be cheap, hence workers pay be cheap and such........ human rights u say???? in all chinas history we do not come close to the way western nations have....... the african american slaves...... chinese were the first to circumnavigate the world and did we take over any of those countries like western powers did!! take africa for example..... practically more then half of the nations were under foreign rule!!!! human rights!!! look at your history idiot!!!! why do we have to follow your rule of government ???? is your rules the alpha omega???? wait!!! i do remember the US leading the world to its WORST ever recession!!!!!

    October 8, 2010 at 6:58 am |
  25. JACK GOULD

    Kita,

    China's Zheng He had mapped and explored the world long before the japanese were able to build a decent boat, common sense will tell you that "Diaoyu" belongs to China. The Aino in northern japan are Russians, they are not japanese. So the four northern islands belong to Russia. japan is robbing the territories around it by hiding behind the big guns of the USA. Do the japanese own all the whales in the world for " scientific research " too?

    October 8, 2010 at 8:15 am |
  26. kita

    JACK ,
    You are wrong. USA and Japan are friend after ww2. The 4 northern islands are Japanese territory from many years before ww2. Russia took the islands after ww2. China says Senkaku belongs to taiwan therefore Senkaku belongs to China. It is nonsence. 明史in1739 descrives Taiwan belongs to Japan. Read it. In your logic,
    China has to give Taiwan back to Japan.

    October 8, 2010 at 6:46 pm |
  27. JACK GOULD

    Kita,

    We will give the earth back to the short japanese together with all the whales in the world for your shusi. Be careful when you greedily gobble that much shusi, you may choke to death.

    October 9, 2010 at 11:46 am |
  28. John

    JACK, you are rude.

    October 10, 2010 at 12:04 am |
  29. appropriate

    China is good at making forge.
    Look at "The Fake Of Nanking" of youtube.

    October 11, 2010 at 5:26 pm |
  30. bolarinwa; a student 4r Nigeria

    I think what the Eu needs is whow to make their economy........... to start producing goods also and to fight for their various economy,and let China be the market place to sell. like they did to African.The chinese leaders are just doing what is good and best for its people;by provideing jobs............After all they [EU] sold the ideal of capitalist economy to China.

    October 12, 2010 at 12:19 pm |
  31. bolarinwa; a student 4r Nigeria +2348138350753

    Let play the game according to the rules btw EU and China; let their b Free Market polices and let see who will b the winer at the end. ...And Let d laws of supply and demand will judge and market forces.

    October 12, 2010 at 12:31 pm |
  32. Fakejap

    appropriate-you are using what you see in youtube as reality and historical evidence, you are a REAL moron.

    October 12, 2010 at 1:13 pm |
  33. juan

    grece is a great nation and it must be helped by the EU is better for Europa

    October 12, 2010 at 3:31 pm |
  34. asdf

    look how much the us dollar has fallen since the economic crisis.
    Hypocrite much?

    October 12, 2010 at 4:44 pm |
  35. Ali

    appropriate

    you are using what you see in youtube as reality and historical evidence, you are a REAL, AUTHENTIC moron.

    October 13, 2010 at 3:04 am |
  36. NO_KITA

    Kita: OKINAWA IS Japan? Who throw A-bomb against u?

    October 16, 2010 at 10:05 am |
  37. Hugh

    As a compensation, the four islands were given to Russia. But Diaoyu belong to China although both countries have touched to it. And as result of world war two, Diaoyu is controled by Japan but it does not mean it is the territory of Japan. Japanese shoule learn and reflect the lesson of World War two as German.

    November 16, 2010 at 1:45 pm |
  38. Roelof

    China doesn't have a crisis and the most billionairs of all. They should buy in the USA and EU, because their yuan is low that cost us all jobs. There are living twice more consumers in China than in USA and EU together.

    November 17, 2010 at 11:14 am |
  39. peter

    good for China, now they have someone else to trade with who doesnt keep complaining about currency like the US ; the only reason Europe is complaining is because the US is telling them to

    November 20, 2010 at 12:25 am |
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