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

OK, fair warning: earlier this year I probably wrote too many posts on the threat of deflation and lower interest rates to the American investor.

I still think these are major issues, but now I am hung up on how to invest in the time of the Trials of the Euro Block.

So, if you visit my blog in the next few days, be warned that you're going to see a lot of articles on the euro - hopefully a few will be useful.

Yesterday's New York Times had a interesting article. While the fixation of most U.S. investors is on the euro/dollar relation - and what it might mean for business - the focus in Asia is elsewhere. And here's a key paragraph:

The steep rise of the renminbi prompted a Commerce Ministry official in Beijing to warn Monday that China’s exports could be threatened.

The official’s comments were the most explicit yet on the implications for China of Europe’s recent financial difficulties. The comments also suggest that even China — the world’s fastest-growing major economy and increasingly the engine of global growth — is not immune to the crisis that started in Greece and threatens to spread across much of Europe.

“The yuan has risen about 14.5 percent against the euro during the last four months, which will increase cost pressure for Chinese exporters and also have a negative impact on China’s exports to European countries,” Yao Jian, the ministry’s spokesman, said at a news conference in Beijing, according to news services, using another term for China’s currency.

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