“The argument that China should rescue Europe does not stand, as reserves are not managed that way…China’s purchases of European bonds, International Monetary Fund bonds and U.S. bonds are also based on those principles.”-Fu Yin, Vice Foreign Minister of China

Back on November 28, the Commerce Minister of China, Chen Deming, said they were more than willing to save struggling economies: “Some European countries are facing a debt crisis and hope to convert their assets to cash and would like foreign capital to acquire their enterprises. We will be closely watching and pushing forward the progress.”

Now, December 3, an official higher up than Chen says no way.  The Vice Minister of China, Fu Yin, says China’s $3.2 trillion in foreign reserves should be managed under the principles of “safety, liquidity and proper profitability”.

Apparently bailing out the United States, European countries, or even the IMF, does not meet those requirements.

Fu restated a requirement for future bailouts, that Chen indicated a week ago; any bail outs must play by China’s rules: “Successful investment should be reciprocal.”