Dec. 13 (Bloomberg) -- China will withhold aid to Europe unless it meets certain conditions, including its recognition of the Asian nation as a market economy, Yao Yang, director of the China Center for Economic Research at Peking University, wrote in a commentary in the China Daily today.

Failure of the euro would be bad for China, leaving the U.S. dollar as the single international reserve currency, he wrote. It would also mean the European market, China’s largest source of export demand, would be far weaker, he wrote.

China won’t provide substantial financial assistance to Europe without an “iron-clad” investment guarantee, Yao wrote.

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