Why China Can't and Won't Save Europe, Part I

Editor's note: This is the first of a two-part series on the unlikelihood of a Chinese contribution to a financial bailout of Europe. Part I examines the domestic obstacles to a Chinese contribution. Part II will examine the European obstacles to a Chinese contribution.

SHANGHAI -- Recent optimism regarding possible Chinese involvement in addressing the European debt crisis is misplaced given China's domestic political and economic conditions, resistance within the European Union itself and the growing international perception that Europe's leaders simply do not have the capacity to design a sustainable solution for the continent's economic woes. The disappointing outcome of the Cannes G-20 summit, accompanied by yet another Greek convulsion, have confirmed the view that Europe cannot help itself. Meanwhile, the assumption that China will invest significant amounts of its sovereign wealth in an as-yet-undefined bailout fund without any major concessions from the EU is deeply misguided. ...