Chillin' out till it needs to be funded
Even as Angela Merkel calls on China personally on a 2 day visit, targeting the Asian ‘surplus’ for its funding needs, China battles with slowing growth and troubled development modes waiting and watching for recovery to take hold and keep growth above the 7% mark it needs to stay afloat. Germany needs to fund the new European stability Mechanism after France lost its AAA rating and also fund EUR 1 Tln for banks that would be out of lliquidity by now after paying off the bonds due in January, that would nullify all funding in the three year LTRO by this week.
China has previously discouraged further expectations of Europe funding quoting the public outcry at funds leaving the country at such a sensitive time. china is also active militarily in South China Sea and Tibet/Central Asia and rejuvenating the Silk Route that goes through many Central Asian republics to grow trade arms, even as it seeks MFN treatment or member status in WTO
China’s manufacturing PMI has been teetering just below 50 even a sit made definitive bottoms at 47 and turned around in the last 3 months while Services PMI has been growing China, india and even the US as Europe trade whittles down cutting export figures for all global BRIC and deverloped economies. Italy received funding directly from the UK, where David Cameron’s government refused to join the “Fiscal Compact” that the Euro 17 nations are looking at as temporary degrowth and pain to come out balanced under the thumb of the EU by 2014