Does China Face the Risk of Deflation?

The transcript discusses the current economic strategies of a government facing unsustainable growth and high debt. It highlights the cautious approach towards easing and the market's reaction to investment opportunities. The discussion also covers China's crackdown on risky local government funding practices and the impact of global energy markets on deflation. Challenges in boosting local economic growth and consumer spending, particularly due to environmental restrictions, are also addressed.

What is the government's stance on economic easing as discussed in the first section?

• Aggressive and expansive

• Conservative and cautious

• Indifferent and passive

• Unpredictable and erratic

Why was the market surprised by China's crackdown on local government funding?

• The market was not affected by the crackdown

• The government had previously announced this step

• The crackdown was unexpected and sudden

• The government had not communicated their plans

How is the central bank expected to respond to economic conditions in the coming year?

• With immediate and drastic measures

• With aggressive monetary policies

• By ignoring global energy market trends

• By maintaining a wait-and-see approach

What impact do lower oil prices have on China's economy?

• They provide economic benefits

• They have no significant impact

• They are detrimental to economic growth

• They increase inflationary pressures

What is one of the main challenges in boosting consumer spending in China?

• Lack of infrastructure development

• Environmental restrictions affecting job growth

• Overinvestment in the manufacturing sector

• High consumer confidence