Portable Alpha

Can Europe Handle a Sustained Trade Deficit With China?

I guess China should "de-lever" its reliance on export sectors. And a one-time revaluation probably would be too much for now.

No offense, tho quite some Europeans, organizations and individuals are big on scapegoating external factors [i.e. cheap Chinese products and agressive US expansion] rather than looking at what might have gone wrong on the inside, a less-than-plausible unemployment benefit [de-incentivising the workforce and motivating the unemployed ], an insignificant amount of working hours [just don't see 35 hours a week is heading anywhere whilst people in the states work 10 hours and a half per day on average and folks in Beijing probably work over 12 hours sorta on average on a daily basis], and excessive government burden on pension system, as well as lack of humbleness and pragmatism given their ethnocentricism and perceived privilege [which is just not so realistic].

I think it's time for them to work on the competitiveness and attractiveness of their education system, immigration reform, reevaluate their public policy priorities than elaborating how to best generate revenue via launching punitive measures against US software giant and Chinese made leather goods and apparels.