How Will China React to Trump's Trade Policies?

The video discusses the evolution of US trade policies, particularly the border tax adjustment, and its potential impact on the US-China trade relationship. It explores how these policies could affect currency values, trade deficits, and market reactions, especially in Asian economies. The discussion also covers China's internal economic strategies, including deleveraging and financialization, and the challenges posed by rising credit market yields. The video concludes by highlighting the ongoing competition between the US and China as global superpowers.

What is the primary effect of the border tax adjustment discussed in the first section?

• It decreases US exports.

• It incentivizes imports over exports.

• It collapses the US trade deficit.

• It stabilizes the yuan-dollar exchange rate.

How are Asian markets, particularly China, expected to react to aggressive trade negotiations?

• By increasing interest rates.

• By reducing exports to the US.

• By devaluing their currency to boost competitiveness.

• By increasing tariffs on US goods.

What is a key focus of China's internal economic strategy as discussed in the third section?

• Stabilizing the yuan against the dollar.

• Increasing total social financing.

• Decreasing total debt.

• Reducing nominal GDP growth.

What is the significance of the rising yields in China?

• They reflect a general repricing of yields due to US impact.

• They indicate a decrease in corporate borrowing costs.

• They suggest a stabilization of the yuan.

• They show a decrease in China's economic growth.

What broader geopolitical issue is highlighted in the third section?

• The conflict between the US and Russia.

• The trade agreement between the US and Europe.

• The competition between the US and China.

• The alliance between China and Russia.