The China effect in anxious Europe

Abstract

The world economy is going through a testing time and Europe’s concerns are understandable. Much attention has been focused on the rise of Asia, especially the economic performance of China during the past decades. There seems to be anxiety about the loss of economic dynamism in the West when compared with the growing confidence in Asia. This essay surveys some of the reasons for anxiety, from those that are common to the global economy to those that arise specifically from the problem of China. It identifies the source as the perceived power shifts in the Pacific and Indian oceans that affect American interests and indirectly those of Europe. While future generations of Europeans need to know Asia better, this is no different from the need for Asians to understand the West, something Asians have been trying to do for over a century. There is no reason why Europeans cannot do that quickly and well.