In an attempt to shore up its beleaguered finances, Spain will shortly be announcing a series of economic agreements with China. Spain will welcome the multimillion pound Chinese investment that is expected to include wine, ham, and olive oil exports to the world's second largest economy to avoid problems such as unemployment of four million and borrowing costs nearing eurozone highs to grow further.

The agreements, to be signed by Prime Minister José Luis Rodríguez Zapatero and China's vice-president Li Keqiang, will most likely include public support for Spanish bonds. It is worth noting here that China already holds 13 percent of Spain's debt. Zhu Bangzao, ambassador of China to Madrid, told El País newspaper that his country planned to continue buying Spanish debt. "During these times of crisis, China feels it is a requirement to support Spain and the EU to work together to end the crisis," Bangzao remarked. "We are not coming empty handed."

Kathleen Brooks, research director at Forex.com, said, "Europe's peripheral nations desperately need to find buyers for their debt to help push down the cost of their borrowings, so China's desire to diversify its reserves out of dollar-denominated assets could help to save the eurozone."

Spain has been under constant pressure from international investors selling sovereign bonds of high-deficit countries on fears that debts will not be repaid. The sell-off has already pushed Ireland and Greece into bailouts by the International Monetary Fund and the European Union and has created high uncertainty around a possible rescue for Spain and Portugal. However, both Spain and Portugal have denied they need any help to meet their debt payments.