What's the Nuclear Option for China in Trade Talks?

The video discusses the widening spread between offshore and onshore Chinese currency rates and the potential intervention by Chinese authorities to prevent the currency from breaching the seven level against the US dollar. It explores the considerations of Chinese policymakers, including the impact on investor sentiment and capital flows. The discussion also covers China's potential 'nuclear options' in economic negotiations, focusing on the bond market and the balance of payments with the US.

What alternative strategies might China consider instead of currency manipulation?

Discuss the implications of using the bond market as a weapon in international relations.