China Doesn't Want to Weaponize Yuan as It Could Backfire, Prasad Says

The video discusses the complexities of the US-China trade war, focusing on currency dynamics, economic conditions, and reform challenges. It highlights the ideological and economic conflicts between the two nations, the implications of tariffs, and China's strategic responses to maintain growth while managing financial risks.

What is one of the main challenges faced by the PBOC in managing the yuan's exchange rate?

• Strengthening the yuan to an all-time high

• Allowing the yuan to float freely while preventing market overreaction

• Increasing the level of market intervention

• Reducing the yuan's value to boost exports

Which factor is contributing to the yuan's weakness according to the transcript?

• US's aggressive rate tightening cycle

• US's declining interest rates

• China's booming retail sales

• China's aggressive fiscal expansion

How are US tariffs impacting China's industrial policy?

• They are supporting China's Made in China 2025 plan

• They are striking at the heart of China's industrial policy

• They are encouraging more foreign investment in China

• They are reducing China's export restrictions

What is a potential consequence of the US's unilateral approach to the trade conflict?

• Disrupting complex supply chains

• Increasing China's economic growth

• Reducing tariffs on Chinese goods

• Strengthening alliances with other countries

What is a concern for China if it uses traditional stimulus measures?

• Boosting short-term growth without long-term consequences

• Preventing the restructuring of the financial system

• Reducing financial system risks

• Increasing the yuan's market value

What is a Minsky moment, and why is it a concern for China?

• A sudden collapse in asset values due to excessive debt

• A decrease in corporate debt levels

• A rapid increase in economic growth

• A significant rise in foreign investments

What fundamental problem in China's financial system remains unsolved?

• Lending to weak state-owned enterprises

• Low levels of bad loans

• High growth of corporate debt

• Excessive foreign investments