It is already well known that the United States is poised to lose its status as the world’s largest industrial producer for the first time 110 years. In 2011, China will become #1.
But China is also poised to claim another, possibly more important crown. China will become the world’s lender and investor of last resort, a title the United States has held since the end of World War II. Mail Online reports:
China has said it is willing to bail out debt-ridden countries in the euro zone using its $2.7trillion overseas investment fund.
In a fresh humiliation for Europe, Foreign Ministry spokesman Jiang Yu said it was one of the most important areas for China’s foreign exchange investments.
The country has already approached struggling European countries with financial aid, including offering to buy Greece’s debt in October and promising to buy $4billion of Portuguese government debt.
As China passes the United States in another key measure, let’s look at the bright side: We can let China lose money bailing out insolvent countries and not waste our own.