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

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

SHANGHAI -- Due to multiple ideological and practical obstacles, major Chinese participation in any European rescue plan would require significant material concessions from European leaders to gain any traction among Chinese policymakers and citizens. So far, proposed concessions have been largely symbolic, such as promises to recognize China's market economy status. Moreover, China prefers to deal either directly with national governments or in multilateral settings such as through the International Monetary Fund (IMF), rather than with the European Union. Far more tangible quid pro quos would be necessary to induce China to participate directly in any bailout package, and even indirect participation via an expanded IMF lending facility would require major adjustments to the European position. ...