euro debt impact.pptVIP

Impact on China of European debt crisis;;The?European sovereign debt crisis?is an ongoing?financial crisis?that has made it difficult or impossible for some countries in the?euro area?to repay or?re-finance?their?government debt?without the assistance of third parties. From late 2009, fears of a?sovereign debt crisis?developed among investors as a result of the rising private and?government debt levels around the world?together with a wave of downgrading of government debt in some?European states. Causes of the crisis varied by country. In several countries, private debts arising from a property?bubble?were transferred to sovereign debt as a result of banking system bailouts and government responses to slowing economies post-bubble. In Greece, unsustainable public sector wage and pension commitments drove the debt increase. ;;;;Impacts on China;Their impact on the global economy is still affecting most of the world today, especially the export-driven economy of China. Experts also believe the impacts have become much more serious. Europe is one of Chinas biggest trade partners. The primary products China exports are textiles, coal, machinery, tea and rice. But the tough austerity measures in the euro zone have reduced the external demand for its goods, leading to a further reduction in exports.;China, the worlds second largest economy, has much to be worried about over the European debt crisis, given that about one-fifth of its exports goes to Europe. It has already felt the impact from the European crisis, having posted a decline of 2% for the first four months of 2012 compared to the same period a year ago. Meanwhile, foreign direct investment from Europe fell 27.9% in the same reporting period due largely to the European debt crisis. A survey by the European Chamber of Commerce found that about 22% of European companies in China are considering moving their investments out of the country, according to China Daily report of 15 June.;European debt crisis has limit