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There may be an increased risk of potential spread

Increased risk of potential financial and economic

According to Bank for International Settlements estimates that the euro zone countries, banks in Greece, Ireland, Portugal and Spain, risk exposure as much as 1.58 trillion U.S. dollars, of which France and Germany, the largest exposure of banks, accounting for the euro area 61% of bank exposure , of which 174 billion U.S. dollars for the sovereign debt.

Meanwhile, the debt crisis the EU’s economic prospects dim, marked increase in macroeconomic risks. First, the debt crisis hurt the economy just beginning to restore confidence. Fearing the economic situation may worsen the debt crisis, private consumption and investment to further shrinking of the EU’s fragile economic recovery lost two important engine of growth. Second, the euro-zone countries will have to tighten fiscal impact on the fragile economic recovery, fiscal consolidation efforts of the Government will become more difficult, these countries will have to go through a longer period of economic difficulties.

IMF has the European sovereign debt crisis threatening global economic recovery as a major threat. However, the ECB chief economist Juergen • Staack, said recently that the debt crisis of the European financial market turmoil triggered by the worst should come a time. According to IMF forecasts, the global economy will grow 4.6% this year, but from the EU perspective, in view of Germany, France and other major economies are still performing well, the European economy “second bottom” is unlikely.

Now, the European debt crisis is not the direct impact on China. But should guard against a crisis effect “spillover” deteriorating world economic environment, thereby affecting China’s exports, increased international “hot money” For me the impact of risk. Meanwhile, parts of Europe believe that the debt crisis in Europe to promote China’s foreign exchange reserves to provide the opportunity for diversification.

Now, the European debt crisis is not the direct impact on China. But should guard against a crisis effect “spillover” deteriorating world economic environment, thereby affecting China’s exports, increased international “hot money” For me the impact of risk. Meanwhile, parts of Europe believe that the debt crisis in Europe to promote China’s foreign exchange reserves to provide the opportunity for diversification.

Or make me more severe export situation

Europe, though not sovereign debt crisis will have serious impact on our country, but its negative effects can not be ignored.

First of all, the European sovereign debt crisis may be in the world have a “spillover” effect, dragging down the global economic recovery. “The New York Times” quoted the comments of experts, said the current debt crisis has not only the euro area, including the United States, Japan and the United Kingdom, including major Western economies in general are a problem of indebtedness. Europe delays if not solved the debt crisis, market confidence will be hurt easily “transmitted” to other countries.

Secondly, as a globally significant economy, the EU economic recovery may be frustrated by the debt crisis, China’s exports and in turn affect the safety of financial assets. China’s national debt currently held by Greece and the Greek financial institution’s assets are limited, may not be directly affected. But if the Greek debt crisis can not be effectively checked, and then spread to Spain and Portugal, and other euro zone countries, China faces the risk of exposure is bound to expand.

Compared with the security of assets, the debt crisis in Europe the impact of China’s exports may be greater. The EU is currently China’s largest export market, according to Chinese statistics, bilateral trade in 2009 accounted for 16.5% of the total value of China’s imports and exports, which China’s exports to Europe accounted for 19.7% of China’s total exports. Once the recovery is fragile European economy is once again drawn into the plight of this debt crisis, resulting in the shrinking of consumption, China’s export situation will become even more complicated. Moreover, the economic situation worsened often contribute to trade protectionism.

Since the international financial crisis, the EU frequent anti-dumping against Chinese products, such as trade remedies, whether because the momentum was further exacerbated by the debt crisis in Europe cause for concern. In addition, the debt crisis, the euro against the dollar has fallen over the past six months or more than 20%, which further weakened the Chinese products competitive in the European market, making China’s exports to Europe increasingly grim situation.

Finally, because the European economic outlook is not promising, a large number of hot money flows may turn to China and other emerging markets, thereby increasing our economic “overheating” risk. In view of interest rates could lead to international “hot money” speed up the influx, which the Chinese government to choose the interest rate to control the economy “overheating” additional obstacles.

Can take the opportunity to promote the diversification of foreign reserve

European debt crisis for our country provided an opportunity to promote diversification of foreign exchange reserves. Luxembourg, former Deputy Prime Minister and Foreign Minister Jacques • Phillips believes that the future of the euro, the dollar, the yuan will become the world’s three major currencies, the currencies of this pattern of diversification in China’s interest. He suggested that the Chinese government continues to adhere to reserve diversification strategy, in particular to increase the proportion of euro assets and reduce over-reliance on the dollar. He said that although the depreciation of the euro foreign exchange reserves in euro assets shrink, but the balance of payments in Europe is better than the U.S., the dollar’s potential risk for even greater vigilance.

Phillips said that from the perspective of preservation, the euro is more secure than the dollar. In response to the process of financial and economic crisis, the United States adopted a series of measures to contain are great risks to inflation and, as the reserve currency country, the U.S. government issued Quanzhuan Jia Duocilanyong currency crisis. The European Central Bank has to maintain price stability as the only goal, in the past 10 years, the euro-zone inflation is basically under control, it is the credibility of the euro as an important safeguard.

Meanwhile, the current shot to buy euro assets and to increase European investment in not only economically sound, from the point of view also help to narrow the diplomatic strategy of China’s relations with the EU countries. Engaged in trade and economic relations of the EU in Brussels Free University, Institute of Contemporary China, a senior researcher Duncan Freeman, wrote recently in the local media that the debt crisis behind in Europe, China played an active role, not only the attitude of a responsible big country insist investment in euro assets, to help maintain stability in the euro, but also for EU exports and provided strong support. Therefore, how to use the debt crisis in Europe to promote China-EU strategic partnership, to improve the image of China in Europe, has practical significance. In addition, the euro lower in Europe for Chinese enterprises to invest in the opportunity.

I am a professional editor from China Manufacturers, and my work is to promote a free online trade platform.
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