The European financial crisis has been felt by many other economies across the globe, as one of the largest economies in the world continues to unravel. Adam Roseman of ARC Investment Partners discussed the impact of the crisis on China’s economy.

He wrote: “The EU is China’s largest export market. The current stage of the European crisis will have a significant impact on China’s export trade and there are signs that this is already happening.”

He continues, explaining that “When the financial crisis first struck the US and Europe in 2008, China’s exports to the EU remained unaffected. It was only in 2009 that exports to the EU suffered a large fall. This was followed by a strong recovery in 2010, which brought exports to the EU back up close to their pre-crisis levels. It appeared that the EU and Chinese exports there had returned to normal. This has turned out to be an illusion. The failure of the EU to deal with the problems it faced merely delayed the day of reckoning.”

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