Should Europe really worry about its trade deficit with China?

Europeans are now echoing American concerns about China’s trade surplus. This column argues that there is little reason to worry about Europe’s trade deficit with China nor evidence that China should be pressed to revalue the renminbi.

VoxEU.org is a policy portal set up by the Centre for Economic Policy Research in conjunction with a consortium of national sites, including the Italian site LaVoce, the French site Telos and the Spanish site Sociedad Abierta. Vox aims to promote research-based policy analysis and commentary by leading scholars. The intended audience is economists in governments, international organisations, academia and the private sector as well as journalists specializing in economics, finance and business.

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