The chairman of China’s sovereign wealth fund remains sceptical about supporting a European bailout.
As the global financial crisis continues to hit the eurozone, Nicolas Sarkozy, the French president, and other European leaders have been banking on China to step in and wave its magic wand. But is China prepared to bail out Europe?
Al Jazeera’s Teymoor Nabili talks to Jin Liqun, the supervising chairman of China Investment Corporation, China’s sovereign wealth fund, to find out whether China is willing to invest more money in Europe, in particular in the European Financial Stability Fund (IFSF), which European leaders now want to beef up for future bailouts.
Jin, who has served as China’s deputy minister of finance and vice president of the Asian Development Bank, manages $400bn worth of the nation’s money through the sovereign wealth fund. He says that unless Europe changes its labour laws and adjusts its welfare system, he does not consider it to be a profitable investment.
“If you look at the troubles which happened in European countries, this is purely because of the accumulated troubles of the worn out welfare society. I think the labour laws are outdated. The labour laws induce sloth, indolence, rather than hardworking. The incentive system, is totally out of whack.
“Why should, for instance, within [the] eurozone some member’s people have to work to 65, even longer, whereas in some other countries they are happily retiring at 55, languishing on the beach? This is unfair. The welfare system is good for any society to reduce the gap, to help those who happen to have disadvantages, to enjoy a good life, but a welfare society should not induce people not to work hard.”
Jin Liqun, the supervising chairman of China’s sovereign wealth fund
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