Of all the emerging economies, China is in the best position to assist the ailing nations in the eurozone due to its abundant financial reserves. But it has all the right reasons not to do so in the near term.

President Hu Jintao has indicated previously that China is keen on making investments in Europe but it would require guarantees before lending to the economies in need.

Moreover, China has changed its mind because it is not yet in a position to save Europe based on domestic issues that it needs to manage.

Even if China has continuously achieved considerable political and economic gains, its economy still accounts for less than 10 percent of global GDP at present, while the developed nations of Europe and America make up half, the BBC reported.

In fact, even in a time of crisis, Europe remains China's largest export market, with EU nations acquiring some US$386 billion worth of goods imported from China in 2010, according to World Bank data. Unfortunately, it seems the export industry has been badly hit by the economic slump.

According to the BBC's interview with Professor Michael Pettis of Beijing University, direct Chinese involvement in lending to debt-saddled EU nations could be damaging for trading relations in the long term.

Pettis said that by increasing its total investment in the eurozone, China is likely to push up the euro's value. That would make the eurozone's exports less competitive in international markets and Chinese exports more competitive in Europe - hardly an outcome that will help struggling Mediterranean countries, the BBC reported.

What the Chinese government can consider instead is to invest directly in property, such as buildings, factories or infrastructure that woudl create jobs in the euro nations, the BBC report further stated.

Hu's Predicament

In spite of the pressure, China still is apprehensive about giving the EU financial aid whether in terms of buying debt papers of EU countries or providing development loans.

Hu is also facing a deadline of retiring a year from now, and is confronted with his nation's concerns of slow growth and high inflation.

Although China is most likely among the 22 emerging Asian economies to maintain steady and rapid growth over the next five years, according to the Bloomberg Economic Momentum Index for Developing Asia, it is not yet ready to assume the role of Europe's redeemer.

The main issue remains that Beijing changed its mind because of its incapacity to lift the euro nations out of the doldrums, not just yet.