China Has Already Prepared a List to Retaliate, Citi's Liu Says

The video discusses China's strategic response to trade tensions with the US, highlighting potential retaliatory measures and economic impacts. It examines the risks to jobs in China and the flexibility of the labor market to absorb these changes. The role of the People's Bank of China (PBOC) in managing economic policies, including monetary and fiscal strategies, is also analyzed, with a focus on maintaining economic stability and growth.

What is one of the reasons China might not escalate trade tensions further?

• China has no other economic measures to use.

• China wants to increase its imports from the US.

• China exports significantly more to the US than it imports.

• China has a larger list of tariffs to impose.

How might China absorb job losses in the electronics and machinery industries?

• By increasing tariffs on US goods.

• By creating more jobs in the service sector.

• By reducing the working age population.

• By increasing exports to other countries.

What is the PBOC's approach to managing economic growth amid trade tensions?

• Maintaining a strict monetary policy.

• Increasing interest rates significantly.

• Reducing fiscal policy measures.

• Implementing proactive and forward-looking policies.

What is expected to become more expansionary in the second half of the year?

• Employment policy

• Trade policy

• Fiscal policy

• Monetary policy

What is one potential outcome of the combined monetary and fiscal policies?

• Decreased financial stability.

• Increased trade tensions with the US.

• Higher risk of LGFV default.

• Stabilization of the Chinese economy.