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Brad Setser: Financial flows structure central to China-Europe trade debate

Brad Setser: Financial flows structure central to China-Europe trade debate
Financial flows in China-Europe trade

Brad Setser highlights that the ongoing debate involves not just trade, but also the current structure of financial flows.

He notes there is a significant overlap between Chinese and European exports, suggesting that financial dynamics are integral to understanding the broader conversation on trade.

Setser recently observed that European leaders view trade relations with China as unbalanced and unsustainable. He also reported a sharp decline in German auto exports to China, putting around 0.6 percentage points of GDP at risk. Both developments highlight concerns over economic exposure and external reliance in Europe.

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