In the wake of a handful of high-profile Chinese investments in companies such as Volvo and a constant barrage of headlines declaring the country’s economic rise, some Europeans might have the impression they are already being bought up by Beijing.
This impression will be reinforced by a proposal that would see China give a small chunk of its $3,200bn foreign exchange reserves to the International Monetary Fund to bail out
European banks or backstop sovereign debt in the eurozone.
But while the country’s huge reserves make it an important participant in international debt markets, they do not represent a piggy bank that China Inc can raid to snap up big swaths of European industry.