Roubini Sees Many Ways China Can Retaliate to U.S. Tariffs

The video discusses the significant trade imbalance between the US and China, highlighting the disproportionate import-export figures. It explores China's potential retaliation strategies, including currency devaluation and economic policy adjustments. The discussion also covers China's economic flexibility and long-term strategic planning in response to US actions, emphasizing the ongoing competition between the two nations.

What is one of the potential retaliatory measures China could take against the US in response to trade imbalances?

• Increase imports from the US

• Strengthen its currency

• Reduce foreign direct investment in the US

• Dump U.S. Treasury securities

How might China respond to the US's attempt to contain it geopolitically?

• By reducing its military presence in the South China Sea

• By increasing its aggression

• By abandoning the Made in China 2025 program

• By becoming more cooperative

What is one of the tools China uses to manage its economic slowdown?

• Increasing interest rates

• Easing monetary and fiscal policies

• Reducing exports

• Increasing tariffs on US goods

What is the significance of China's long-term approach to economic competition with the US?

• It relies on frequent elections to guide policy

• It enables strategic planning over decades

• It allows for quick policy changes

• It focuses on short-term gains

How does the weakening of China's currency affect its trade competitiveness with the US?

• It makes Chinese goods more expensive in the US

• It increases China's import costs

• It neutralizes the impact of US tariffs

• It leads to a trade surplus for the US