Will Take Quite a While to Fix China Property Market: Professor Pettis

The transcript discusses China's economic challenges, focusing on centralization, the property market, and household confidence. It highlights the political and economic issues China faces, such as resolving debt and increasing household GDP share. The discussion also covers the property market's instability and the need for strategies to boost household confidence, like increasing wages and strengthening the social safety net. The role of government intervention and moral hazard in addressing these challenges is debated, with a focus on the need for gradual economic adjustments.

What is one of the main political challenges China faces in increasing the household share of GDP?

• Balancing trade with neighboring countries

• Resolving debt and cost allocation between local and central governments

• Increasing foreign investments

• Reducing military expenditure

Why is stabilizing the property market in China considered difficult?

• The property sector is too small to impact the economy

• Property prices are low compared to other countries

• The sector produces more than the economy can absorb and prices are high

• There is a lack of interest in property investments

What is a suggested method to rejuvenate household confidence in China?

• Investing in technology startups

• Increasing household income and strengthening the social safety net

• Reducing taxes on luxury goods

• Encouraging more foreign tourism

What has been Beijing's stance on bailing out the property sector?

• Beijing has already bailed out the sector

• Beijing has ignored the property sector issues

• Beijing has been reluctant to bail out the sector

• Beijing has been eager to bail out the sector

What is the historical comparison of China's residential property as a percentage of GDP?

• It is not comparable to the global average

• It is about the same as the global average

• It is lower than the global average

• It is significantly higher than the global average