Everyone in Europe talks about the "flood" of Chinese imports hitting their shores, particularly in EVs, batteries, drones and other high-tech products, decimating local industries.

At the macro level, however, there's no indication of rising Chinese penetration. We do see the surge in specific sectors such as vehicles - but these are a tiny share of total European trade, and the broad economy-wide data are much more well behaved.

The real macro problem for Europe is not that China is selling too much ... but rather that China has stopped buying. European exports to China have fallen off visibly over the past few years, a reflection of weak mainland demand as well as burgeoning self-sufficiency policies. And this is trend that shows up at the macro level in Europe, both in terms of its impact on industrial demand as well as widening bilateral deficits.