Correction: Nomura Notes The "Much-Overlooked" Risk of EU-China Trade Tensions

Nomura's 2026 outlook highlights EU-China trade tensions as a significant risk overlooked by markets. The bank warns of a "second China shock" due to China's rising competitiveness in high-end machinery, leading the EU to potentially impose tariffs and barriers on Chinese goods. Nomura forecasts a slowdown in China's exports to the EU from an average of 7.4% (2021-25) to around 5% in the coming years, indicating that Europe will face a more severe impact from this shock compared to the first.