U.S.-China Economic Game of Chicken

The video discusses the escalating trade tensions between the US and China, focusing on the US's planned tariffs on Chinese goods and China's potential responses. It highlights key dates and economic measures, such as the PBOC's reserve ratio cut, aimed at mitigating the impact on China's economy. The video also touches on the strategic considerations of both countries in this trade dispute.

What is the main reason for the United States imposing tariffs on Chinese imports?

• To reduce the U.S. budget deficit

• To address violations of intellectual property rights

• To increase U.S. exports to China

• To strengthen diplomatic relations

According to the South China Morning Post, why might China avoid targeting U.S. companies in China?

• To increase domestic production

• To maintain a positive trade balance

• To encourage more international investment

• To reduce dependency on U.S. technology

What is the purpose of the PBOC's reserve ratio requirement cut?

• To increase foreign exchange reserves

• To decrease inflation rates

• To boost lending to small and medium enterprises

• To strengthen the Chinese yuan

How much money is expected to be injected into the economy due to the PBOC's policy change?

• $700 billion

• $500 billion

• $300 billion

• $100 billion

What is the intended use of the funds for larger banks as per the PBOC's directive?

• To invest in foreign markets

• To conduct a debt for equity swap

• To increase interest rates

• To purchase government bonds