Cornell University's Prasad on China's Growth

The video discusses the need for market discipline in China's economy, highlighting challenges such as weak private sector confidence, financial distress, and youth unemployment. It emphasizes the importance of government reforms, transparency, and private sector support to achieve sustainable growth. The discussion also touches on the potential 'Japanification' of China's economy and the need for market-oriented reforms.

What is one of the main reasons market discipline has not been effective in China's financial system?

• Lack of financial markets

• Over-reliance on foreign investment

• Belief that Beijing will intervene

• Absence of local governments

What is a significant domestic challenge currently facing China's economy?

• High export demand

• Low youth unemployment

• Weak private sector confidence

• Strong property market

What action is necessary for China to achieve sustainable growth according to the third section?

• Focus on foreign markets

• Reduce labor force

• Increase state enterprise investments

• Enhance private sector productivity

What is a key factor hindering the private sector's growth in China?

• Insufficient resources directed to SMEs

• Lack of state enterprise support

• Excessive foreign investment

• High labor costs

What is a potential risk for China if it follows Japan's economic path?

• Demographic challenges

• Over-reliance on state enterprises

• Loss of foreign technology access

• Increased geopolitical disputes

Why is transparency important for building business confidence in China?

• It reduces labor costs

• It hides bad news

• It ensures accurate data reporting

• It increases state control

What is a major demographic challenge mentioned in the fourth section?

• Low youth unemployment

• Aging population

• High birth rates

• Excessive labor force