Important factors of China’s economic development include commodity imports from Europe. On the one hand, some of the largest volumes of imports come from the EU countries and their dynamics may reflect the aggregate demand of the Chinese economy and serve as an indicator of economic dynamics in general. On the other hand, economic recovery in China creates an adequate (growing) demand for European goods. Therefore, the current weak dynamics of Chinese imports shows that no recovery of the Chinese economy should be expected in the coming months. And with that – the Chinese economy will not be able to be a driver for the European economy, whose industry shows a downward trend. The good news in such conditions is that there will be no increase in inflation, which will allow the EU markets to see desired price limits.
What does this have to do with Ukraine, and why should we care about China’s economic recovery?
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