Jacob Lew on Trade War, China

The video discusses the economic relationship between China and the US, focusing on China's leverage through its holdings of US debt and the RMB currency. It highlights the progress made in allowing the RMB to reflect market forces and the importance of this for China's economy. The video also addresses the challenges in US-China relations, emphasizing the need for China to open its economy to market forces, reduce subsidies, and adhere to international norms, particularly in intellectual property. The speaker expresses concern over the US's role in international norms and the need for constructive engagement with China.

What was a significant concern for the US Treasury regarding China's economic practices?

• The RMB being undervalued

• The US trade deficit with China

• China's environmental policies

• China's military expansion

How does a stronger RMB benefit China's domestic economy?

• By increasing export competitiveness

• By decreasing foreign investment

• By reducing inflation

• By enhancing consumer purchasing power

What is a major challenge in US-China relations according to the transcript?

• China's military presence in the South China Sea

• The US losing its role in international norms

• China's population growth

• The US's environmental policies

What economic change is suggested for China to improve its market conditions?

• Increase state-owned enterprises

• Reduce subsidies to heavy industries

• Strengthen currency controls

• Limit foreign investments

Why is intellectual property a significant issue in US-China business relations?

• US companies do not invest in China

• Intellectual property is not valued in China

• China has no intellectual property laws

• US companies have to share their intellectual property