Europe’s Debt Crisis Casts a Shadow Over China

The falling Euro is making Chinese companies less competitive in Europe, one of China's most important export markets. While the falling Euro makes European exporters like Dior happy (above, a grand opening for a Dior in Shanghai), it is complicating moves by Beijing to de-couple the yuan from the U.S. Dollar, meaning that any weakening of the yuan (which in turn would help U.S. companies hoping to sell in China and make Chinese imports in the U.S. more expensive) will likely to have to wait a little longer.

Europe’s Debt Crisis Casts a Shadow Over China - NYTimes.com