Chris Buckley and Zhou Xin
August 22, 2011
BEIJING (Reuters) – The “Black Death” of debt crisis across the euro zone will hurt China by sapping demand for exports, although Beijing’s relatively small holdings of euro assets will limit any damage to foreign exchange reserves, the nation’s top official newspaper said on Monday.
The bleak diagnosis for the euro’s prospects appeared in the overseas edition of the People’s Daily, the top newspaper of China’s ruling Communist Party, in a commentary by a former central bank official and an economist for the state-owned China Development Bank.
The commentary in the People’s Daily does not reflect a definitive view from China’s top leaders, but it suggests the euro zone’s successive crises have stirred anxiety and debate in Beijing about the impact on China.
“The euro debt crisis has now been going for nearly two years since the end of 2009, and the sovereign debt crisis has spread like the Black Death of the fourteenth century across the euro zone countries,” said the commentary, referring to the rodent-borne pandemic that devastated Europe.