China is the world's biggest creditor, with foreign exchange reserves of around $3.2 trillion. Europe would like Beijing to use some of that money to lend a hand and help bail out the eurozone. China has stressed it will not be a savior to Europe.
However, there are a few reasons China could change course and come to the rescue. Here are three:
1. The EU is Chinas biggest trading partner
The European Union is China's biggest trading partner.
If the bloc goes belly-up, there goes the market for 20 percent of China's exports – a tough blow for an economy still heavily reliant on its sales abroad. Plus, if the eurozone mess leads to a deep European recession or a systemic crisis, the whole world could follow Greece down the drain. China may be the global economy's locomotive, but if all the wagons fell off the viaduct, they would pull the engine with them.
2. It could help China get political points
Lending to Europe might be a little risky at the moment, but it could buy political dividends. China is keen for the European Union to officially grant it "market economy" status, which would ease the entry of Chinese goods. Beijing also wants the EU to drop the arms embargo that Brussels imposed after the Tiananmen Square massacre.
Quid pro quo deals are blatantly obvious, but they could be done.
3. It could mean currency opportunity for China
China is looking to diversify its foreign exchange holdings away from the US dollar, and lending to Europe would boost Beijing's euro holdings.
If China was feeling particularly bold it could insist on lending in its own currency, the reminbi, which would nudge the currency a little closer to becoming an international one – and make borrowers bear exchange rate risks.