Pinnacle Activity Ticker
European Investment Bank meets China
Pinnacle Digest writes: The EU continues to be lured by China's economic clout and growing importance in the global community. The European Investment Bank has decided to expand its presence in China by opening its first representative office in Beijing. This is according to Werner Hoyer, the European Investment Bank's president.
Mr. Hoyer believes the plan will strengthen cooperation between China and the EU.
The EIB was founded in 1958 and since then, has conducted the vast majority of its business in Europe. It began operating in emerging markets throughout Asia and Latin America in 1993.
In 2010, the bank granted a $500 million Euro ($644.5-M) loan to China to support projects to mitigate climate change. That came 3 years after an initial grant of $500 million Euros to the country for the same purpose. China is clearly still unwilling or incapable of achieving growth while mitigating its damage to the environment. One just has to look at the US to see how difficult that task can be. Technology from Europe is one of a few key aspects needed to bridge the gap between environmentally minded economic expansion.
That money has been used to support up to 15 projects in China to mitigate climate change, as well as to support a greater and better use of renewable energy sources and a more efficient use of energy in general. This is another example of the EU and China growing closer together and not further apart. If the EU is to come under continued financial pressure, perhaps China will be able to return the favor of aid. Although the price tag will be far greater, at least China will be able to find the EIB's office.