Chinese government ordered the central bank and finance officials to prepare emergency plan

In mid-May, after a visit to Beijing the Australian Foreign Minister disclosed that China was “very concerned” about the crisis in euro zone. On Monday China has almost officially recognized this. According to Reuters, the Chinese authorities have asked the Central Bank, the Reform Commission and all key financial institutions of the country to develop contingency plans in case greece leaving the eurozone. Those departments must “present their proposals as soon as possible.”

China, which recorded a growth rate of 8.1% in the first quarter and reduced its growth target to 7.5% for year 2012, considers what happens in Europe is not only a threat for its exports, but also for its own development.

The figure of manufacturing activity registered in May has confirmed last week the slowdown of the second world economy. Its overseas exports rose only 6.9% yoy for the first four months of the year, against 20.3% in 2011 and 31.1% in 2010. The government confirmed that there won’t be any idea of massive fiscal stimulus plan for the moment, but it is preparing to take action in support of key sectors such as automotive and steel industries.