Latest News:  
Beijing   Sunny    13 / 0   City Forecast

People's Daily Online>>Foreign Affairs

Will the NPC ride to the UK's rescue?

By Mark Hughes (China Daily)

08:23, March 13, 2012

All economists' eyes and many of those with a mortgage, a pension, savings, stocks and even a job are on Greece, wondering whether it will default on its sovereign debt.

But what has this got to do with China and the ongoing National People's Congress?

Well, if Greece does default, and in my view the chances are very high, it would leave it being run by a European Commission placeman and former Goldman Sachs banker (with all the baggage that entails), who was forced on the Greeks after their democratically elected prime minister was thrown out under European Union pressure.

It will put further pressure on the euro, which is in a long-term downward trend against the dollar. It will also put more pressure on Spain, Portugal, Italy and Ireland's economies. This could lead to the failure of the euro. That in turn would shake all of the world's economies. Europe would start importing far less, putting Chinese companies out of business and thereby increasing unemployment here.

Whatever emerges in this long drawn out saga will have a profound effect on world financial markets.

Already, Premier Wen Jiabao noted in his central government report to the National People's Congress that the expected growth rate for China is now 7.5 percent. Earlier this year the prediction was for 8 percent. Chinese markets have taken a tumble on news from Europe.

We live in a world of dark economic uncertainties.

【1】 【2】 【3】

Email|Print|Comments(Editor:张茜)

Leave your comment0 comments

  1. Name

  

Selections for you


  1. 8 babies rescued in human trafficking crackdown

  2. Flowers bloom in Shandong

  3. 17 Afghan civilians shot dead by a U.S. soldier

  4. 3rd COMIC & GAME UNION expo in Beijing

Most Popular

Opinions

  1. Truth about Tibet is slowly coming to light
  2. Expert: Glitter of foreign diploma to fade away
  3. NPC reform reflects vote of confidence
  4. Facing problems forges confidence for development
  5. Defense budget guards peaceful intentions
  6. Will China's economy keep growing or slow down?
  7. Chinese products bring benefits to U.S. consumers
  8. Is international 'hot money' flowing into China?
  9. China's economy to roar ahead amid global woes
  10. U.S. solution to Syria issue doomed to failure

What's happening in China

Hey job candidate, what's your sign?

  1. China to halve adult illiteracy by 2015
  2. Survey: 40 pct women change jobs for babies
  3. Taxi driver critical after rear-ended by Porsche
  4. Wenzhou mulls first hanging rail transit
  5. Rural Chinese pollution to be monitored soon

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai