Effects of the debt crisis on the EU-China relations
The economic (debt) crisis has become serious in the EU and in the Eurozone especially in the last few months. The European Financial Stability Facility (EFSF) was created as an instrument to handle this situation. But the financial contributions of the EU Member States seem not to be enough and China appears as a potential contributor. It is often cited that China offered Portugal and Spain in March 2011 to support their crisis management. However, recently, there are attempts from the side of the EU to convince China take part in the EFSF. Thus the question raised often in Europe is the following: Will China contribute to the EFSF? If yes, what conditions will the country raise? What are the arguments of the Chinese capital both in China and the EU? Consequently, our research is focusing on the impacts of the global financial and economic crisis on the new relations between the European Union and China. China’s enormous reserves enable the Asian financial assistance to European countries in crisis management but there are a number of questions related to this. The main findings of this study are that China can benefit from its European crisis management from many aspects, as the EU is the largest market for the Chinese products. Furthermore, reserve currency diversification and political considerations cannot be neglected, either. But the assistance may have serious risks for China: not only the expected return on investment is at a stake, but internal social and political tensions can emerge from helping the Europeans who still live in significantly higher wealth than most of the Chinese people. Adopting Chinese capital raises questions for the European Union, as well. China may impose such terms by which the EU may become vulnerable and get into a dependent position, then presumably it will be difficult to solve the cooperation.
|Date of creation:||2012|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Charles Wyplosz, 2010.
"The Eurozone in the Current Crisis,"
Finance Working Papers
22825, East Asian Bureau of Economic Research.
- Wyplosz, Charles, 2010. "The Eurozone in the Current Crisis," ADBI Working Papers 207, Asian Development Bank Institute.
- Dabrowski, Marek, 2010. "The global financial crisis: Lessons for European integration," Economic Systems, Elsevier, vol. 34(1), pages 38-54, March.
- Marek Dabrowski, 2009. "The Global Financial Crisis: Lessons for European Integration," CASE Network Studies and Analyses 0384, CASE-Center for Social and Economic Research.
- András Inotai, 2011. "After the Crisis?," Public Finance Quarterly, State Audit Office of Hungary, vol. 56(3), pages 360-378.
- Karin Kondor & Karsten Staehr, 2011. "The impact of the global financial crisis on output performance across the European Union: vulnerability and resilience," Bank of Estonia Working Papers wp2011-03, Bank of Estonia, revised 13 May 2011.
- Carmen Valentina RaDULESCU & Ildiko IOAN, 2009. "Economical Crisis And The European Union’S Cohesion Policy," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 1(1), pages 62-67, December. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:40367. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.