Chinese visit Spain to confirm support

CHINESE vice premier Li Keqiang arrived in Madrid yesterday for a three-day visit.

He met finance minister Elena Salgado and industry minister Miguel Sebastian yesterday, and today will meet King Juan Carlos and Prime Minister Jose Luis Rodriguez Zapatero.

The visit follows the publication of an editorial by Li on Monday in Spain’s El País newspaper, in which he said that China was and will remain a long-term investor in Spanish sovereign debt. China’s public support could prove crucial when the Eurozone crisis flares up again, with bond markets’ eyes on Spain and Portugal as requiring potential bailouts.

Chinese backing saw the cost of Spain’s borrowing drop from a 5.5 per cent yield on 10-year bonds to a 5.3 per cent yield yesterday.