China VS USA in Europe

trans-pacific partnership in one picture

…And the loser is…

European Union is the only big market in the world that has not yet been divided between the major players. The time has come, however.

USA wants this market and needs it – and it seems that it is their only plan for a good economic future. Otherwise, the States will have to announce default.

China wants to sell to Europe and develop, otherwise, will enter its greatest economic crisis.

Thus, the game seems tough and astonishing.

Trans-Pacific Partnership

The US have long pressed to achieve this trade agreement (TPP). And signing it is part of their possible future victory. At the moment, their economy is too closely linked to China.

The economic growth in capitalism is based on division of labour. In 1980s, seeking to finance the “information revolution” and stimulate demand, the US included China in their division of labor system. China started making very cheap and new products. People started to take loans and buy stuff, like iPhone in our days etc. And the money they saved (because China made that stuff really cheap) were forwarded to repay those loans. 🙂

The plan with TPP is basically to widen the market of the US products and services. And Europe has the potential to satisfy (at least mostly) the needs of the collapsing US economy.

What Does TPP Mean for Europe?

In the long run, it means that the European economy will be thrown back and its development is highly questionable if any.


Because they will now have to buy American products instead of local. Local companies will go bankrupt and stop their existence. Just like it happened in Bulgaria where most of the companies were closed and Bulgarians now have to buy goods from other European countries.

By signing TPP, the US indirectly indicate that no other country now will sell to Europe, including Russia, Turkey, or China. All other actions in political economy are aimed to close European market for other countries and to open it for the USA.

So what?

TPP is only a part of a big and complex plan and doesn’t mean anything in itself. It may become absolutely useless if other parts of the plan seize to work. Globally, USA want to decrease drastically China’s role and push their own economy. They want to control global economy and regulate it for their needs. If they succeed there are big chances that European Union will not come apart (except for Great Britain – they are likely to go out of the play, and Catalonia seems to know something too) and that China will meet great economic problems.

We’ll see…

An alternative view on TPP may be partly found in the market review for 2015 in the Economy section – Europe.

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