Yuan Will Depreciate More in 2019, Says Deutsche Bank's Zhang

The video discusses the impact of the US-China trade war on currency depreciation, interest rate differentials, and economic strategies. It highlights the potential for increased tariffs and the resulting pressure on the Chinese currency. The discussion also covers the interest rate differences between the US and China, and how these affect bond yields and economic stability. China's strategies to mitigate the trade war's impact, such as cutting import taxes and stabilizing exports, are also examined. The global economic context, including challenges in the eurozone and supply chain shifts, is considered in relation to China's economic stability.

What is the expected impact of the US imposing a 25% tariff on Chinese exports?

• Increase in Chinese exports to the US

• Depreciation of the German currency

• Strengthening of the Chinese currency

• Worsening of the trade war

How might the interest rate differentials between the US and China affect the Chinese economy?

• Stabilization of the Chinese economy

• Decrease in US Treasury yields

• Pressure on the Chinese currency

• Increase in Chinese exports

What strategy is China employing to counteract the trade war's impact?

• Devaluing the US dollar

• Raising interest rates

• Cutting import taxes

• Increasing export tariffs

What is a significant challenge China faces in stabilizing its economy?

• Increasing trade surplus

• Shrinking current account deficit

• Strengthening US economy

• Rising global oil prices

What is a potential policy response for China to address higher tariffs?

• Currency depreciation

• Increase in domestic interest rates

• Strengthening of the euro

• Expansion of trade surplus