Rumors are swirling that China will be a major part of the Eurozone rescue by buying the debt of many of the troubled countries through the EFSF entity. Below is my understanding of such a move. It is clear the leaders pushing for funding by the BRIC countries are desperate. This leads me to believe that the country most in trouble is actually France with its President, Nicolas Sarkozy the main proponent of such an idea. From what I understand, it is actually France, with its high fiscal deficits and reliance on exports that could be most hurt by securing funding from China.
If the funding does take place not directly into the EFSF, but through an IMF led program, I am not sure how this will affect EU trade balances and capital flows. I hope to dig more into this as the information is released.