China, the Second Canary in the Coalmine (Next to Spain)

It appears that a bunch of EU countries (as of May) are now in recession.

This is not good for China, because apparently, the EU buys the most garbage from China (the US is a close second; the US was dethroned in 2010).

This makes sense, given that the EU, as a whole, is the largest economy in the world.

Unfortunately, if the EU is struggling, it won't buy as much garbage from China, which in turn will have less money to spend on German cars, French clothes, Italian cars and cheese, and Greek olive oil from the EU. This isn't good because China is the EU's second-largest export market.

Source: http://graphics.thomsonreuters.com/12/04/EZ_RECCMP0412_SB.html

Source: http://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_the_People's_Republic_of_China

Source: http://en.wikipedia.org/wiki/European_Union

Source: http://en.wikipedia.org/wiki/List_of_the_largest_trading_partners_of_the_European_Union

Source: http://www.youtube.com/watch?v=tv39fen7Dek&feature=player_embedded
Source: http://trimtabs.com/blog/