Spain´s socialist PM José Luis Rodríguez Zapatero is soon expected to announce a string of economic agreements with China, according to a report in The Guardian. In reality this means that the developing nation China is bailing out the once so proud EU member Spain. The Chinese "development aid" to Spain will most likely involve public support for Spanish bonds. China already holds 13% of Spain's debt.
With 4 million unemployed and borrowing costs near eurozone highs, Spain will welcome the multimillion pound Chinese investment, which is likely to include olive oil, ham and wine exports to the world's second-largest economy.
Zhu Bangzao, China's ambassador to Madrid, told El País newspaper that his country planned to continue buying Spanish debt. "During these times of crisis, China feels it is a requirement to support Spain and the EU to work together to end the crisis," Bangzao said. "We are not coming empty handed."
There will soon be more than enough of Spanish wine in China. The best Rioja Gran Reservas are of course reserved for the party and business grandees. But the politybyro of the governing Communist party has one major problem to solve: how on earth will ordinary Chinese country folks start drinking cheap Spanish red wine with their daily rice?