Northern Trust's Douglas Morton on China FX Reserves

The video discusses China's economic strategies, focusing on foreign exchange reserves, the RMB's role in trade imbalances, and the impact of global interest rates. Douglas Morton provides insights into the central bank's actions, the flow of hot money into China, and the potential use of economic tools in response to US sanctions. The discussion also covers the divergence between Chinese and US interest rates and its implications for global markets.

Discuss the potential strategies China might employ in response to US sanctions.

What trends are observed in the trade balance between China and the US, and what might this indicate for future relations?