False European Hopes of a Chinese Savior

Europe courts China with hope of financial rescue. “Europe’s economy is now sufficiently damaged that China alone can never do enough to help it recover,” writes researcher Jonathan Holslag for the Financial Times. “To put it bluntly, why should we expect Chinese companies to create jobs in Europe when our own ones stumble under the weight of high wages and taxes? And why should we expect our exports to grow when so many European industries prefer to build products in China?” Manufacturing and industrial output would add jobs and economic stability. On that front, China is a competitor for Europe. “When Chinese companies do invest in Europe, they are seeking knowhow, and export channels,” Holslag notes. Europe has failed to adjust to economic realities and Europeans are losing confidence, he warns. Borrowing without policy reforms or investments that lead to sustainable job growth weakens Europe and hastens the shift in global power. – YaleGlobal