MAjor play by China in global economic / geopolitics.
“For Europe, the rise of China is exacerbating its own decline. Until recently the economic debate turned on whether Europe could keep up with America; now it is whether it can stay ahead of China. “Beyond a certain size, China is disturbing,” says one Eurocrat. It not only threatens Europe’s low-end manufacturers of shoes and textiles but is quickly moving into making cars, trains and, perhaps soon, planes. Yes, the Chinese love BMWs and Gucci bags. But can Europe survive on high-spec and luxury goods—Switzerland on a continental scale?
The EU is surely right to demand reciprocity, but it must be the right sort. Starting a tit-for-tat trade war would leave Europe worse off: consumers would pay higher prices, taxpayers would suffer and firms would lose markets. What Europe needs is more open markets and clearer rules. For China, too, these would be a better buy than dodgy bonds.”