Last month Wen Jiabao, China's premier, announced that Beijing would use its foreign exchange reserves to support and accelerate overseas expansion and acquisitions by Chinese companies. This “going out” strategy will benefit Europe and should be welcomed. Estimated at more than $2,000bn (€1,400bn, £1,200bn), the Chinese reserves are the largest in the world. Like all foreign investment, Chinese capital will bring employment, tax revenue and reciprocal market access. More generally, a welcoming stance could in the long run stimulate investing companies to adopt – to some degree – standards of corporate governance and social responsibility that are compatible with Europe's economic interests.
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