How the European Crisis Impacts China

For China, the euro crisis was 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 was 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 had clearly affected exports. This challenge was also an opportunity, for the crisis had forced China to speed up its domestic economic restructuring. Strategically, Europe’s weakening might diminish its role as a balancer in the international system. This outcome was not in China’s interest since its vision is a multi-polar world. At the same time, the European crisis had improved China’s position in the global arena.