Setser: China Has Trillions in Additional Foreign Assets

The video discusses China's hidden foreign reserves, which are larger than officially reported, and their role in global finance. It covers Secretary Yellen's visit to China, focusing on policy discussions and potential improvements in bilateral relations. The importance of China's hidden reserves in providing global credit and the challenges of local government debt, exacerbated by COVID-19, are also analyzed. The central government's fiscal capacity is highlighted as a potential source of economic stimulus.

What is the estimated value of additional foreign assets under China's state control?

• A couple of million dollars

• A couple of hundred dollars

• A couple of trillion dollars

• A couple of billion dollars

What is the main focus of Secretary Yellen's visit to China?

• Policy discussions and debt relief

• Tourism and cultural exchange

• Military cooperation

• Trade agreements

What decision did China make in 2010 regarding its reserves?

• To increase gold reserves

• To sell all foreign assets

• To diversify using policy banks

• To invest in cryptocurrency

What is the central government's debt as a percentage of China's GDP?

• 50%

• 75%

• 25%

• 100%

Why are local governments in China financially constrained?

• Due to high tourism revenue

• Because of a surplus in land sales

• Because of the downturn in the property market

• Due to increased foreign investments