Taking Stock of China's Economy

The transcript features a discussion with Steven Shoe, Deloitte China's chief economist, on China's economic outlook. It covers topics such as the PPI numbers, the PBOC's exchange rate policy, and the impact of base metals on the economy. The conversation also touches on China's debt burden and financial stability, highlighting the concept of 'controlled failure' to manage risks without causing systemic issues.

What was the main concern about the Chinese economy last year?

• A potential hard landing

• Trade surplus

• Excessive inflation

• Currency devaluation

What is the preferred policy response of the PBOC to the rising interest rates in the United States?

• Reduce foreign reserves

• Increase capital controls

• Lower the exchange rate slightly

• Increase short-term interest rates

What is one potential negative effect of administrative measures on the Chinese economy?

• Higher GDP growth

• Improved trade balance

• Harm to both large and small firms

• Increased foreign investment

What do base metals like iron and copper represent in the context of the Chinese economy?

• The service industry

• The technology sector

• The agricultural sector

• The China trade

What strategy are Chinese regulators using to manage financial risks?

• Complete deregulation

• Controlled failure

• Currency manipulation

• Increased borrowing