The Sydney Morning Herald

China backs Spain to emerge from crisis
The Sydney Morning Herald

China is confident Spain will recover from its economic crisis and Beijing will buy Spanish public debt despite market fears of an Irish-style bailout, a top Chinese official said Monday.

The comments by Vice Premier Li Keqiang were made in an op-ed piece in Spain’s leading daily El Pais one day ahead of his arrival in Madrid for a three-day official visit, the start of a European tour that will also include Britain and Germany.

« Since China is a responsible investor country in the long-term on the European financial markets, and in particular in Spain, we have confidence in the Spanish financial market, which has been translated into the acquisition of its public debt, something we will continue to do in the future, » he said.

Chinese state media on Monday also quoted Beijing’s ambassador to Madrid as saying China is willing to make « positive efforts » to help Spain with its economic recovery.

Li’s meetings this week with Prime Minister Jose Luis Rodriguez Zapatero and Finance Minister Elena Salgado will « play a key role » in financial stabilisation, Xinhua news agency quoted the ambassador, Zhu Bangzao, as saying.