CHINA has urged the Eurozone to take drastic action to restore confidence in its economy to prevent the “Black Death” of its sovereign debt crisis from damaging the world economy.
Chinese state media warned that the bloc’s surging debt costs will lead to a decline in demand for exports that will have a “far-reaching impact” on China’s real economy and further afield.
“The sovereign debt crisis has spread like the Black Death of the fourteenth century across the Eurozone countries,” said authors Zhang Zhixiang, formerly of the People’s Bank of China, and Zhang Chao, an economist for the state-owned China Development Bank.
The authors also called on the Eurozone to show a “responsible attitude” towards stabilising the global economy and financial markets.
The scathing commentary comes just days before French President Nicolas Sarkozy is due to meet with Chinese President Hu Jintao to discuss the global economic situation amid intensifying investor worries over the sustainability of the Eurozone debt and the slowdown in global growth.
The EU is China’s biggest trade partner, with bilateral trade in goods in 2010 reaching €395bn (£344bn), according to EU statistics.