2. TABLE OF CONTENT
1. How China became that powerful
2. Why China doesn‟t want to help Europe too
much
3. The downside and upside of China‟s success
4. Conclusion
3. HOW THE POWER HAS SHIFTED TO THE EAST
The crisis began in America, shifted to Europe
China enjoyed 2 decades of expansion
now they have a seat at the top
table of political powers (G20)
Asia handled their financial crisis in 1998 way better
than Europe is right now
China‟s currency, the Yuan, will know better
exchange rates
4. CHINA WILL HELP EUROPE, BUT NOT THAT
MUCH
Hu Jintao said the emerging economies won‟t be
regarded as Europe‟s „Good Samaritans‟
China will fight against the crisis if it helps the
international financial market
“It wouldn‟t be fair to the emerging countries”
The EU is China‟s largest trading partner
China remains a bit dubious about the rescue plan
5. THE ONE PIECE OF GOOD NEWS THAT
INVESTORS SHOULD NOT IGNORE
Investors were concerned that inflation was too
high
These days core inflation is still rising
But the headline and food inflation is declining
6. THE ONE PIECE OF GOOD NEWS THAT
INVESTORS SHOULD NOT IGNORE
Plenty of proof that growth in EMs is slowing
EM governments have to slow their growth down
Next year will be better for the emerging markets
(As long as Europe avoids the worst outcomes)
7. CONCLUSION
Europe‟s problems come at an unfortunate time for
China
China will help Europe to gain market status
This year wasn‟t that bad of a year for China
Next year will even be a lot better
8. SOURCES
(Elliot larry;Cannes showed how power has shifted to Bejing;
http://www.guardian.co.uk/business/economics-
blog/2011/nov/06/economics-us-europe-china-crisis; 6
November 2011)
(Branigan Tania; China says emerging economies will not play
„good samaritan‟ to Europe;
http://www.guardian.co.uk/business/2011/oct/27/china-
emerging-economies-europe; 27 October 2011)
(Sholto Cris; The one piece of good news that investors
should not ignore; http://www.moneyweek.com/news-and-
charts/economics/asia/moneyweek-asia-inflation-is-beaten-in-
asian-emerging-markets-14500; 11 November 2011)