China’s help in debt crisis to make Europe dependent – expert

China probably sees benefit in buying out Europe’s debt, as it will make the continent more dependent on Beijing, says financial adviser and wealth manager Marco Pietropoli.

“I think there are a number of issues here,” he said. “One is this extends China’s political influence in Europe by making a lot of European states dependent on China to buy their debt. That will help them massively in the next round of trade talks and create significant leverage with regard to further trade talks. Also it allows China, perhaps, to slow down the appreciation of the yuan, as the Europeans and the US have been really going on about for quite a few years now.” Chinese officials pledged to step up support for European stabilization efforts “if necessary.”The statement was announced by China’s vice premier, Wang Qishan, during the third annual China-EU High Level Economic and Trade Dialogue, held in Beijing on Tuesday.The EU is China’s biggest export market, and Beijing has a strong interest in helping to support stability in the region.