U.S., China Face Recession Risk in Trade War: Zhao

The video discusses the potential economic impacts of Donald Trump's proposed 45% tariffs on Chinese imports, including a possible recession in both the US and China. It examines the weakening Chinese currency and the risks associated with protectionist rhetoric. The video also explores potential strategies for US-China trade relations, suggesting a middle-ground approach. Finally, it highlights a shift in China's economy from manufacturing to consumption, which could protect against trade tensions.

What is one potential consequence of imposing a 45% tariff on Chinese imports?

• Increased US manufacturing

• Deflation in China

• Strengthening of the Chinese currency

• Decrease in US inflation

How has the Chinese currency been performing compared to other emerging market currencies?

• It has been outperforming

• It has been fluctuating unpredictably

• It has remained stable

• It has been weakening significantly

What might the Chinese government do if a trade war erupts?

• Increase exports to the US

• Reduce tariffs on US goods

• Strengthen the Chinese currency

• Drive down the Chinese currency

What is a possible middle-ground strategy for the US in dealing with China?

• Imposing higher tariffs

• Maintaining the status quo

• Seeking more concessions from China

• Reducing trade with China

What shift is occurring in the Chinese economy according to the transcript?

• Increased reliance on exports

• Shift towards consumption-led growth

• Focus on manufacturing sector

• Dependence on foreign investments