We are most definitely no stranger to the eurozone crisis in descent. Reports noted that just last Thursday, French president Nicolas Sarkozy was amidst a meeting with CCP Leader Hu Jintao. A day later, Klaus Regling, chief executive of the European Financial Stability Facility (EFSF) was spotted in Beijing. Regling speaks about the visit here:

The European Union, not normally one to plead for help, reaches its wit’s end. Regling’s request for China’s financial assistance to prevent the eurozone collapse turns the tides in the latter’s favour. Despite having conflicting reports on whether China would contribute to EFSF, I believe China would provides its assistance, at least to protect its own interests. If the eurozone collapses, China would lose one of its main product export channels, the basis for strengthening Chinese economy. Of course, China would not want to appear as if its nation is the source of “free money”, so it would make concessions in Europe that may have political or economical effects in the future.

Altogether, China’s help can lighten the EU’s debt burden, but would it actually make a big difference? With the debt gone, there’s also the problem of restrengthening the euro.

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