January 10, 2011
Problems in Europe could end up dragging growth in China, hit commodity prices and derail the nascent American recovery, according to Satyajit Das, the author of “Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives”.
“North America and Asia have been bystanders as the European crisis developed. Increasing concerns are evident, as European problems now threaten global recovery,” Das said.
As China’s biggest trade partner, the European Union economy is crucial to Beijing’s hopes of maintain double-digit growth.
“Any slowdown in Europe would affect Chinese growth. China is also a major holder of euro sovereign bonds, standing to lose significantly if problems continue,” Das said.