In a show of its financial clout, China has come to an understanding with Greece whereby it will purchase an undisclosed (and perhaps to be determined) amount of Greek bonds when the fiscally imperiled state resumes issuance.
Many see the situation as China's attempt to deflect recent criticisms over trade imbalances and the related issue of currency manipulation. However, with its coffers overflowing, it is a very logical move for China not only to diversify by investing in other nations, but to take a chance now and then on securities yielding more than its currently-favored US Treasury securities. Any future Greek sovereign issue will certainly fit that bill.
Some see every move the Chinese make as gamesmanship, or as strategic. While some element of the former exists, the latter is certainly in play. However, it is not any nefarious notion of strategy that is behind moves like this one; rather it is good plain simple investment strategy. If it wins a few friends and deflects a few criticisms along the way, so be it.
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