China would save euro

November, 2011

During the G20 meeting in Paris, some rumors appeared on a British newspaper, that China would present a proposal "to save-euro", for a total value of tens of billions.

The finance ministers and central bankers of the world's 20 most industrialized nations met in Paris for the G20 financial summit. The primary objective of the summit is to clarify the situation on the European crisis and formulate solutions aimed at countering the crisis itself in a reasonably short time.Coinciding with the summit, the British newspaper "Sunday Times" has spread rumors, not official, that China would be presented in Paris with a proposal "Euro-saving", which should be realized through the purchase of government securities and investments in Eurozone infrastructure, with a total value of tens of billions. According to the same newspaper, China would expect that corresponded to their financial commitment Europe's commitment to restructure the balance sheets of euro area countries and cut expenses. The instrument with which China could achieve this bailout would be the sovereign wealth fund China Investment Corporation (CIC). Established in 2007 with the objective to manage part of the national currency reserves, CIC is building a broad portfolio, in which appear both major players in global finance and rich deposits of oil and mineral locations around the world .
“Action needs to be taken quickly. Don't seek the perfect plan. Just do something. It is important to offer a well designed program”

Jin Liqun

President of the board of supervisors of China Investment Corporation

During a press conference in Paris, the president of the board of supervisors of China Investment Corporation, Jin Liqun, responded to rumors appeared on the British newspaper saying that "China Investment Corporation has at its disposal about 100 billion dollars to invest abroad (...): Europe will make the reforms that must be done and then we will intervene". Jin Liqun has continued the same with a statement that sounds like a clear warning to European economic leaders: "Do not look for perfection, for fear of making mistakes, but just do something. Something that really make a difference."