The euro briefly fell back below parity against a robust dollar on Monday and was languishing at five-week lows, weighed down by concern that a three-day halt to European gas supplies later this month will exacerbate an energy crisis.
In fact, this is already happening. Chinese companies are now filling the niche created by western companies leaving. If anything, this further hurts the west since now western companies are losing a large market they used to have access to. And what’s worse for the west is that market is going to China.
I think this stems from China having an amazingly well ironed out industrial base. That said, Russia and Turkey just signed a huge economic partnership recently as well.
In fact, this is already happening. Chinese companies are now filling the niche created by western companies leaving. If anything, this further hurts the west since now western companies are losing a large market they used to have access to. And what’s worse for the west is that market is going to China.
I was expecting parallel imports from India or Turkey to replace them, but the Chinese are really fast.
I think this stems from China having an amazingly well ironed out industrial base. That said, Russia and Turkey just signed a huge economic partnership recently as well.