China Will See Big Slow Down in Growth in 2022: Chu

The video discusses the current economic challenges facing China, highlighting an unprecedented slowdown with modest easing from authorities. Inflation, particularly PPI, remains high, limiting aggressive stimulus. The zero COVID strategy is a major constraint on growth, with authorities likely to maintain strict measures due to upcoming events like the Olympics and the party Congress. This approach could exacerbate supply side issues and contribute to global inflation.

What is one of the main reasons the Chinese authorities are not implementing aggressive stimulus measures?

• Weak export demand

• Low consumer confidence

• High levels of unemployment

• Elevated PPI inflation

What is the expected real growth rate for the Chinese economy in 2022?

• 4.0%

• 2.5%

• 3.5%

• 5.8%

Why are the Chinese authorities likely to maintain the zero COVID policy until the party Congress?

• To improve public health infrastructure

• To increase international trade

• To avoid political risks associated with a large outbreak

• To boost economic growth

What major events are influencing China's decision to double down on the zero COVID policy?

• The Asian Games and the Belt and Road Forum

• The Lunar New Year and the G20 Summit

• The Winter Olympics and the party Congress

• The World Expo and the National Day

How might China's zero COVID strategy affect global markets?

• By reducing global inflation

• By increasing foreign investments

• By stabilizing commodity prices

• By causing supply chain disruptions