How the European Crisis Impacts China
For China, the euro crisis is an economic problem, but also a strategic issue with long-term and deeply consequential impacts. After three decades of rapid development, China’s further growth is dependent upon a dynamic international economic environment. As China’s largest trading partner, the EU plays a crucial role. The shrinking market in Europe and the appreciation of the Chinese currency have clearly affected exports. This challenge is also an opportunity, for the crisis has forced China to speed up its domestic economic restructuring. Strategically, Europe’s weakening may diminish its role as a balancer in the international system. This outcome is not in China’s interest since its vision is a multi-polar world. At the same time, the European crisis has improved China’s position in the global arena.