China: EU Aims to Seal Deal With Beijing(just PR or real beef?)

WSJ ^ | 01/07/11 | MARCUS WALKER in Berlin and JASON DEAN in Beijing

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EU Aims to Seal Deal With Beijing

By MARCUS WALKER in Berlin and JASON DEAN in Beijing

Chinese leaders are stepping up their courtship of cash-strapped European countries such as Spain, pledging to buy their bonds and expand business ties. Yet China watchers caution that despite the warm diplomacy, Beijing won't save the euro zone.

Chinese Vice Premier Li Keqiang arrived in Berlin on Thursday on the latest stage of a European tour that began in Madrid. While in Spain, Mr. Li, who is widely expected to become China's next premier, signed a string of trade and investment deals. He also vowed that China would continue to buy Spanish government debt, a message welcomed by Spain's embattled government as a vote of confidence in the country.

However, Chinese officials made no commitment to lend Spain a specific amount, saying their investments would depend on the circumstances, despite hopeful suggestions in Spanish media that Beijing might buy €6 billion ($7.89 billion) of Spanish bonds.

[TigerLikesRooster]

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