Growth in China Has to Be Domestic: Roche

The video discusses the concept of the Gray zone, a state of mutual hostility between nations that falls short of war. It explores how this affects asset allocation, particularly in the context of dictatorial and democratic models, and the formation of alliances. The video also examines China's shift towards domestic growth due to international trade restrictions and its impact on global economies, highlighting the economic risks and changes in asset categories due to Gray zone warfare.

What is the Gray zone in international relations?

• A state of nuclear conflict

• A state of economic cooperation

• A state of mutual hostility short of war

• A state of complete peace between nations

How does Gray zone warfare affect asset allocators?

• It eliminates economic risks

• It introduces risks based on alliances

• It creates a single global market

• It simplifies global trade

What is a key characteristic of alliances formed during Gray zone warfare?

• They focus solely on military cooperation

• They avoid any form of economic interaction

• They use each other's currencies as reserve currencies

• They trade exclusively with non-allied nations

Why must China's growth rely more on domestic demand?

• Its products are widely accepted internationally

• It has unrestricted access to global technology

• International trade is limited due to restrictions

• It has abundant natural resources

What challenge do economies face when they cannot rely on China's demand?

• They can easily switch to domestic demand

• They lose out due to lack of alternative markets

• They experience rapid economic growth

• They benefit from increased exports