China paper warns of impact from euro crisis "Black Death"

Reuters ^ | 08/21/11 | Chris Buckley

[TigerLikesRooster]

China paper warns of impact from euro crisis "Black Death"

Reuters

By Chris Buckley | Reuters – 3 hrs ago

BEIJING (Reuters) - The "Black Death" of debt crisis across the Euro zone will hurt China by sapping demand for exports, although Beijing's relatively small holdings of euro assets will limit any damage to foreign exchange reserves, the nation's top official newspaper said on Monday.

The bleak diagnosis for the euro's prospects appeared in the overseas edition of the People's Daily, the top newspaper of China's ruling Communist Party, in a commentary by a former central bank official and an economist for the state-owned China Development Bank.

Although the commentary in the People's Daily does not reflect a definitive view from China's top leaders, it suggests that the euro zone's successive crises have stirred anxiety and debate in Beijing about the impact on China.

The commentary came days before French President Nicolas Sarkozy is due to meet Chinese President Hu Jintao in Beijing for impromptu talks that will probably focus on the recent turbulence in global financial markets.

[TigerLikesRooster]

P!

[Frank_2001]

THAT’S RACIST!!!;)

[TigerLikesRooster]

Well, let’s make it PC. We can call it ‘#FFFFFF Death.’ :-)

#FFFFF is the hexadecimal code for color ‘black.’

[RayChuang88]

I think we're forgetting many of the current generation of economists working for the Chinese government now have a foreign college education: Ivy League colleges, Stanford, UCLA and UC Berkeley, University of Chicago, Oxford, Cambridge, etc.

When Chinese economists express doubt about the Eurozone, the whole world listens.

[SAJ]

There are also those of us, not Chinese at all, who have referred to EU as 'Wonderland' and EMU, aka the Euro, as 'the Fishwrapper' for at least a decade.

Milton Friedman had this nonsense pegged absolutely spot-on in his 1995 and 1997 essays upon the subject. These essays WILL repay your effort in reading them VERY handsomely.

FReegards!

[dila813]

“The commentary came days before French President Nicolas Sarkozy is due to meet Chinese President Hu Jintao in Beijing”

It is a state newspaper, they always do this to welcome a visiting head of state ... it is their way.

The question is how much of it is real and how much is hyperbole meant to wring something out of the French.

[The Duke]

Well ... #ffffff is white. We could, however, call it the
“#ffff00 (Yellow) Peril!” :)

[TigerLikesRooster]

Sorry. I got it wrong. Should have been “#000000.” I am not myself lately.:-)

[ponder life]

One thing we need to keep in mind, is that there is a difference between the EU and the eurozone. The EU is made up of 27 nations whereas the eurozone is 17 out of the 27 nations in the EU. Britain, for example, is in the EU, but not the eurozone.

The eurozone will likely be saved by kicking Greece and Portugal out, but they would still be part of the EU as the other 10 nations are. Greece and Portugal will have to default on their debt, causing a plunge in their economy and inability to borrow for a very long time. But at least the eurozone will be saved.

So, I believe the eurozone will survive. Unbeknowst to many people, is that China's exports to the EU can still grow despite a stagnant EU. And that is because, China is moving up the value chain. In fact, a stagnant Europe and North America may actually help China move up the value chain as Western companies seek Chinese investments.