Now, China and Japan are becoming best friends in Europe. Struggling through the purchase of those southern European countries such as Greece, Portugal and Spain, the bonds, Beijing is launching a charm offensive in Europe. Of course, the size of these transactions is not great, but it is a very successful public relations. At the same time, second only to China among the world's second-largest owner of foreign exchange reserves of Japan, is intended to aid in the European bond fund which plans to sell more than 20% of the acquisition in order to promote market confidence.
For the world's largest holder of U.S. dollar, the currency reserves to their portfolio is more diversified, is then just a wish, however. In this regard, go further than China, Japan, over the years, they have been consistent efforts to steadily build a non-dollar reserves. In other words, they showed the appetite of European bonds, not just public relations, behind the surface also has considerable technical and financial side of reason.
At the same time, the objectives pursued by the Beijing government are much more complex than in Japan. Procurement of euro in their move to the back edge of the national debt, there is an enormous political offensive, this is all part of the offensive.
First, the Chinese hope to Europeans and Americans understand that when the situation became difficult, Who is the currency of the world leaders. China clearly has no plans - at least not now - in the financial markets to establish their own hegemony. However, when China faced the pressure of the United States continued and required them to determine the RMB exchange rate against the United States appropriately gentle reminder to do something, apparently also within the scope of their consideration of the matter.