LONDON Oct 27 Helping the euro zone to overcome
its sovereign debt crisis is in China's economic interests, but
the country must be careful not to squander its reserves, Li
Daokui, an adviser to China's central bank, told the Financial
Times newspaper on Thursday.
Chinese support for a bailout for Europe's indebted nations
would depend on contributions from other countries, the
newspaper paraphrased Li as saying.
Beijing would also demand strong guarantees on the safety of
its investment, Li added, according to the report.
"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," Li was quoted as saying on the
"The last thing China wants is to throw away the country's
wealth and be seen as just a source of dumb money."
The Chinese government might also ask European leaders to
avoid criticising China's currency policy, the newspaper said in
indirect speech attributed to Li. Critics have repeatedly
accused Beijing of deliberately undervaluing its currency to
help its exporters.
A former member of China's central bank monetary policy
committee told the Financial Times that European countries must
show that they have the political will and the support of voters
to push through reforms.
"If we see protests and chaos all the time, then China won't
have confidence in Europe's political ability," Yu Yongding was
quoted as saying.
China earlier welcomed the consensus reached at a European
summit to tackle the euro zone debt crisis and supported
measures taken by the bloc that could help the region's
Euro zone leaders face pressure to finalise the details of
their plan to slash Greece's debt burden and strengthen their