What political reasons does China have for buying European debt?

They are an export economy. A stable world is in their best interests. They need to have viable customers. Buying the European debt will keep them as buyers for Chinese goods.

Think about it. Imagine you have a friend that knows a lot of people who are important. There are 2 screnarios:

1) You are mutual friends. He doesn't have to do anything for you, you don't have to do anything for him.

2) You are sort of friends but you loaned him 70% of what he makes in an entire year. Say he owes you $70,000 and he makes $100,000.

Rubber meets the road and you need to get ahold of someone he knows, not well, immediately. If he gets you in touch with this certain person it may end up having significant negative impact in his life.

In situation 1, he will not help you. But in situation 2, will he ever help you. You own him, in sorts. China own part of the US and as they buy other debt they will begin to own those places as well.

The decline of the U. S. dollar will genuinely help cut back the debt and decrease the quantity of imports the U. S. has at the same time because it will enhance the exports. The Euro could replace into the dominant tool in commerce however the placement of the U. S. because of the fact the chief usa in financial concerns won't replace. The financial administration of the enormous companies is going previous national limitations. the upward push of the Euro did not cut back the British pound lots and the U. S. has far greater beneficial sources than the united kingdom. The pass against Iraq replace into not over funds. look on the authentic impacts. the remainder of the worldwide took payoffs and left Saddam abuse his human beings in simple terms as they're now taking payoffs from Iran. smart up.

I don't think there are any political reasons at all. I mean, its mutually beneficial to both side of the trade so why not? Europe is China's largest trading partner and sure China doesn't want it to sink.

why should they? Europeans have always think that they are superior and think that chinese are low class

Here, first you have to understand money.