No linkage between turmoil in Chinese stock market and Greek crisis


Professor Chen Xin

China is paying high attention to the evolution of the Greek crisis from its very first beginning in October 2009. One of the Chinese scholars who is doing extensive research on the matter, is Director of the Economic Division at the Institute of European Studies at the Chinese Academy of Social Sciences (CASS), Professor Chen Xin. Professor Chen kindly responded to the request of for an interview on recent developments. With his answers he contributes towards a better understanding of how China sees now the Greek crisis.

Could the current crisis in the Chinese stock market be linked to the Greek debt one and a potential Grexit?

I don’t think there would be some linkage between the crisis in the Chinese stock market and the Greek debt crisis and potential Grexit. The crisis of the Chinese stock market mainly reflected the lack of the capability of the supervision, especially when the authority facing the challenge of the internet technology.

Is China looking for alternatives as far as its investments in Greece are concerned ?

A stable Greece and a more integrated Europe is line with the China’s interest. As our former President Hu Jintao said, Bu Zhe Teng(不折腾) is the key lesson for China’s development, and I think it could be also a reference for Greece. The most urgent task for Greece is how to find a way for sustainable economic growth, which could change the single industrial structure, and absorb more unemployment. In this regard, attracting more investment can help.

Could China provide loans to Greece via instruments such as BRICS New Development Bank and AIIB?

As far as I know, the BRICS New Development Bank (NDB)  and Asian Infrastructure Investment Bank (AIIB)  mainly serve the projects for the countries covered by the BRICS countries and Asian countries respectively.