Independent International Market Economist To J. Paul Horne Philadelphia, 9 November 2005 Comments By •Most Chinese-EU issues involve key U.S. interests and reactions •Arms, trade, out-sourcing, energy supplies, capital flows, interest rates, FX – have vital implications for all 3 •EU defense, fiscal, labor, social policies increasing influenced by China •EU’s own problems make dealing with CH difficult, and often earns US enmity 2 Europe … the “Old World” 3