European Institute

By James D. Spellman, Strategic Communications LLC

Signs mount that China’s outlook is deteriorating, as a credit-driven bubble of irrational real estate prices bursts and decades of infrastructure investments to sustain double-digit growth have resulted in detrimental side effects, ushering in a likely recession. As the dominant market for many EU-made products, from luxury goods to machinery to transport equipment, China’s slowdown will have far-reaching consequences as Europe’s recovery remains fragile.