Greek eurozone exit 'needs clear response'

China's concern

Shen Wei, professor at the France-based Essca School of Management, said the size and resilience of China's economy could handle the immediate aftermath of a Greek exit from the eurozone.

"However, China will undoubtedly watch very closely the decisions made in Brussels," Shen said.

It isn't only China that is concerned, Shen said.

The US, Canada, Japan and other major players are also speculating on the EU response, if Greece leaves the eurozone, and how Brussels will coordinate with the international community.

Shen said China's investment in Europe had grown substantially in the past few years.

"It will be viewed as an important symbolic gesture if Europe consults China on a coordinated response," Shen said.

At the upcoming G20 summit, on June 18-19, world leaders will be waiting anxiously to hear Europe's position on the issues of fiscal discipline in relation to the eurozone crisis, Shen said.

Zhao Xijun, deputy head of the School of Finance at Renmin University of China in Beijing, said the plans to control capital are "quite necessary" if Greece leaves the eurozone.

"Capital flow is crucial for economic recovery, but efforts to stabilize the financial system must come first," Zhao said.

Credit crunch is the key risk but that should be much smaller than in 2008, said David Carbon, head of economic and currency research at DBS Bank Ltd, in Beijing.

"Markets have had a year to figure out who's in trouble. Global trade and payments depend far less on euros than dollars, and central banks are already providing unlimited liquidity," Carbon said.

One business owner does sense a change in fortunes.

"I've tried to send quotations to my Italian clients in US dollars instead of euros since the end of May," Wang Sheng, the owner of Dongguan Michele Lingerie Co Ltd, said.

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