JPMorgan's Dimon Says He's Patient on Chinese Reforms

The video discusses the patience required in trade negotiations with China, emphasizing the need for reforms in the foreign exchange market. It highlights the challenges of currency convertibility and the necessity of capital controls until full convertibility is achieved. The discussion also covers China's progress in market development, including the creation of bond and stock exchange connections, and the importance of gradual reforms to achieve full market reform.

What is the main focus of the initial discussions with Chinese officials?

• Reducing tariffs on Chinese goods

• Long-term reforms beneficial for both China and international partners

• Immediate trade benefits for JP Morgan

• Increasing exports to China

What is a common misconception about China's currency control?

• China is not interested in currency reforms

• China has no control over its currency

• The RMB is already a fully convertible currency

• China is making the currency go down for trade benefits

What is necessary for RMB to become a convertible currency?

• Adoption of a fixed exchange rate

• Immediate removal of all capital controls

• Ability to freely buy and sell RMB and its underlying assets

• Complete isolation from international markets

What progress has China made in its financial markets?

• Elimination of all market regulations

• Development of bond and stock markets

• Complete market reform overnight

• Closure of mutual fund businesses

What is one of the steps China has taken towards market discipline?

• Avoiding any company bankruptcies

• Allowing some companies to go bankrupt

• Reducing foreign investment

• Implementing strict government bailouts