Two senior advisers to the Chinese government told the Financial Times it was “very likely” to put money into the European Financial Stability Fund (EFSF).
But they say any contribution would have to be given strong guarantees and would depend on the input from other countries.
Li Daokui, an academic member of China’s central bank monetary policy committee, told the paper: “It is in China’s long term and intrinsic interest to help Europe because they are our biggest trading partner.
“But the chief concern of the Chinese government is how to explain this decision to our own people.
“The last thing China wants is to throw away the country’s wealth and be seen as just a source of dumb money.”
The reports came after French president Nicolas Sarkozy and Chinese leader Hu Jintao spoke on the phone on Thursday and pledged to cooperate to revive global growth.
The fund’s chief executive is due to visit Beijing on Friday to talk to potential investors.
Beijing has so far only expressed sympathy for the EU but has not committed any cash and only pledged to help by continuing business as usual.
Earlier, Chancellor George Osborne said the debt deal struck by eurozone leaders is “much better than expected” – but that Europe should not expect additional bailout cash from Britain.
via China Could Give $100bn To Euro Bailout Fund | Business News | News Centre – 106 JACK fm.
