Vice Premier Li Keqiang
Being great buddies with the fastest growing power in the world carries a number of perks…as Spain can most recently attest to. Relations between the two countries have warmed considerably this week with Vice Premier Li Keqiang announcing that China has committed to buying up more of Spain’s debt and working together on a number of fronts.
On Monday, a piece written by Vice Premier Li Keqiang was published in Spanish newspaper ElPais. Titled “China and Spain: A brighter future through win-win cooperation,” it expressed China’s desire to establish tighter economic ties to Spain and China quickly followed through on that promise. China’s first move as new best buds? To help bail Spain out of its debt crisis. China already owns approximately 10% of Spanish debt and Li announced, “China has confidence in Spain’s financial market. It has purchased Spanish Treasury bonds and will buy still more.”
Bloomberg Business Week reports:
China’s ambassador to Spain, Zhu Banzao, also told El Pais on Tuesday that the accords would be worth several billion euros. “In these moments of crisis China feels obliged to unite with Spain and the European Union to deal with getting out of the crisis together,” he said. “We’re not coming (to Spain) with empty hands,” he added.
The vice premier is still there on 3-day talks with the Spaniards, so we can expect more good news to eventuate out of that. For the meantime, the only immediate effect we can see here of this bilateral agreement is that Spain’s popular expo pavilion is going to be one of the few that won’t be dismantled.