China's Xi Seen Expanding Role of Party

The transcript discusses the potential conservative approach and reforms expected after the Party Congress, focusing on structural changes, productivity in the essoe sector, and the need for a more flexible exchange rate. These changes aim to address overinvestment and ensure robust growth, despite potential volatility in the economy and financial markets.

What is the expected impact of the structural changes discussed in the first section?

• Immediate economic growth

• Introduction of volatility into the economy

• Decrease in financial market activity

• Increased economic stability

Why are reforms in the state-owned sector considered necessary?

• To reduce government control

• To enhance productivity and sustain growth

• To increase foreign investments

• To decrease employment rates

What is a likely reform in China's economic policy according to the second section?

• Decreasing public spending

• Enhancing productivity in the SOE sector

• Increasing import tariffs

• Reducing taxes

What risk is associated with China's current exchange rate and capital controls?

• Rapid inflation

• Market sensitivity to currency policy changes

• Economic isolation

• Increased foreign investment

What is necessary for China's continued growth and modernization according to the third section?

• Increasing government subsidies

• Adopting a more flexible exchange rate system

• Implementing strict capital controls

• Maintaining a semi-pegged exchange rate