Beijing: China has proved again to be a rainy day friend for European union in times of sovereign debt problem. During  visit to Europe, china will purchase sovereign debt of Hungary and will give a loan of 1.44 billion dollars.

It is to support the joint ventures between enterprises from two nations. China will support EU members who are in big debt although there are still many uncertainties in the economy of Europe.

A spokesperson of the foreign ministry of china said, “Since the European debt crisis broke out in Greece in 2009, China’s government has adopted a series of positive measures, such as increasing its holdings of euro bonds and promoting its economic cooperation and investment in Europe, to help European countries tide over the current crisis.”

The decision of China is a eye opener as it is acting as a responsible member of the international community. The country wants to fulfill this responsibility to the best of its talent. The maintenance of a stable eurozone is for the interest of EU, China and rest of world.

Economically Europe and china complement each other and there are interwoven interests between the two. As per the president of European council, Herman, “China has been supportive to eurozone countries facing difficulties, just as the EU supports China’s stable development with investment and technology.”

The government of China has sent delegations to Europe with contracts worth billions of dollars. It has also backed measures taken by IMF and EU. Many countries of Europe find it difficult to come out of crisis.

There are some analysts who have predicted deficit –to-GDP ratio. The crisis will become slow by the year 2014. Some analysts have issued warning about restructuring of sovereign debt by European nations.