G20 is more a concern than inflation

G20 week before the meeting, Chinese President Hu Jintao on November 4 to Europe, began a visit to France and Portugal.
Because France will take over South Korea after the G20 meeting of G20's rotating presidency, and French President Nicolas Sarkozy wants to score his leadership in the G20, as the French general election in 2012 to continue running the chips, so Sarkozy will try to win China's support His reform of the global financial system.
To China, being able to Hu's visit to France and France signed during the huge procurement contracts, both factors in China's overtures, and because of the inherent structure of French industry, the larger complementary. At the same time as the European continent has a long history, which for the rise and fall of international power and devoid of allies and enemies, has a more profound experience than the United States and interpretation capabilities, so levels of technology export to China, with more rational calm attitude. The French nuclear power giant China to the procurement of civilian nuclear power application projects, may be only an introduction of trade more widely.
For the Government of Portugal, due to China earlier expressed support for the Greek government to resolve the debt attitude, the view was estimated that Portugal's financial obligations will also receive a positive buying China's foreign reserve. In fact, China has chosen to expand its purchase of the national debt in Europe, mainly from the diversification of foreign reserve assets and foreign reserve the need to maintain strategic value perspective, quantitative easing as the dollar and the continued expansion of the U.S. budget deficit looms, from the purchase of purchase of U.S. bonds turned to other countries in the world more debt, in line with China's interests. In fact, from the financial health of the consideration, the financial position of the United States and Japan, and can not support U.S. Treasuries and Japanese debt deficit national debt than other judgments. Appropriate to leave the U.S. and Japanese bond debt to China is likely to be a good thing.
From China's economic growth required to determine, at present more than 2.6 trillion U.S. dollars of foreign reserve size, is undoubtedly the need to constantly change the situation. Due to the linked exchange rate system, exchange control system and the central bank intervention in the long-term constraints involved in the exchange rate, the plight of China's foreign reserve is an established fact. Fortunately, the current European more responsible, frugal fiscal policy is generally adopted, and because of fiscal discipline and to bring credit growth and debt markets to Europe's huge foreign reserve of China provides the arena.