I'm not sure about China as it might be too corrupt for passive investing to work.
That's an interesting offhand comment. Does that imply that EMH doesn't apply to financial assets in corrupt economies, specifically to external (foreign) investors who can come and leave as they want?
Also, while China's official economic numbers are highly suspect (see e.g. this), it looks very likely that it is one of the three world's biggest economies (along with USA and EU). Can a passive investor afford to ignore it?
To help mitigate the currency risk of investments?
Well, it doesn't mitigate the risk, it just partially avoids it. You are right in that investing in foreign countries brings with it FX risk and while it's easy to hedge a lot of people are not going to bother.
Another interesting thing here is that the currency markets do not fall under EMH, both empirically (they are clearly not a random walk) and theoretically (the preconditions for EMH do not hold).
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Do you want a citation for that P/E ratios reflect market expectations about future value (and thus earnings), or do you want a citation for the claim that the market is good at predicting what earnings will be in the future?
The claim that the market is good at predicting future earnings.
It probably is, but economics does not yet have the empirical grounding to give me high confidence in its theories (the way I would be for fields like physics or chemistry; I still think economic theory has a strongly positive correlation with reality).