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China's central bank offers help to global economy "at the margin"

China can assist the recovery of the global and European economies “at the margin,” Chinese central bank Deputy Governor Yi Gang said, though he stressed that Europe must solve its debt crisis itself, Bloomberg reported. Investors expect that China may help stabilize the eurozone, as Italy, Spain, Portugal and Greece have all solicited investment from the world’s second-largest economy. Chinese Premier Wen Jiabao suggested this month that developed economies should cut deficits and open markets, rather than rely on Chinese support. Yi indicated possible cooperation at the country level, with both the EU and IMF. He also played down the likelihood of a double-dip recession. Earlier this month, Zhang Xiaoqiang, vice chairman of China’s top economic planning agency, said China is willing to buy euro bonds from troubled economies “within its capacity.”

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