European Economics Thread
- Thread starter PiSigma
- Start date
London Loses Its Crown of Biggest European Stock Market to Paris
November 14, 2022London has lost its crown as Europe’s biggest stock market to Paris
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The combined market capitalization of primary listings in Paris overtook that of the UK capital in US dollar terms
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Currency movements have also worked in Paris’s favor as the pound has tumbled 13% against the dollar this year, while the euro has lost only 9%.
supercat
Major
This does not look good, at least for Germany.
This to me is a big question. the current trajectory of Europe is one where they are going to just give America all of their industries while they become impoverished. It seems to me a good time for China to come in (maybe in a couple of months when situation just get really bad there). Bring someone important, but not Xi. Say that you want to mend your relationship with EU and that you want to partners and that you want to invest in Europe. Announce some plans to build factories outside of Hungary. Buy some airbus planes, eurocopter helicopters, sign nuclear reactor with EPR and some other large JVs. Say that Chinese tourism is coming back and welcome Europeans to visit China.
The thing is that covid has really killed China's reputation in these countries. Now that people are focused and angry on the effects of the Russian sanctions and the economic issues, this is a good time to heal things. On top of that, if you have more chinese tourists europe and vise versa, it's just harder for China to get demonized.
The thing is that covid has really killed China's reputation in these countries. Now that people are focused and angry on the effects of the Russian sanctions and the economic issues, this is a good time to heal things. On top of that, if you have more chinese tourists europe and vise versa, it's just harder for China to get demonized.
This assumes that the deterioration of the relationship is China's fault and that it's on China to fix it. More importantly, why is the EU-China relationship worth fixing? The EU is in the US's pocket and the EU has little to offer China. What few technologies China still requires will be indigenized in a few years and the EU won't part with it no matter how good the relationship becomes.
The deterioration in relations is the EU's problem. They can improve the relationship any time they want because they were the ones to unilaterally damage it. The fact that it hasn't happened means they don't want to. So fine.
Engendering greater economic connectedness (so long as you do not corner yourself into dependence in technologies) always means that it is more difficult for the other party to fully align against you.
The EU doesn't offer China any technologies, but it does offer (for now) a market for certain products, as well as it is a major geostrategic front where having a degree of geo-economic influence may make it more difficult for the US to turn Europe against China in future competition.
It is unlikely that Europe will ever respect China's core interests, and there will be significant elements in Europe that will always be forever atlanticists.
But as a geostrategic front/theater of competition, it is not one that China could simply afford to leave alone, otherwise it is left for essentially the US to alter on its own whim.
Of course all of the above is dependent on how much Europe will try to push back against China's own core interests. If Europe is willing to tone down the rhetoric against China, then there may be opportunity for them to work with each other. But if Europe remains as strident as it has been, I imagine China won't try too hard.