First Round of Tariffs Have Minimal Impact on China, Says HSBC's Qu

The video discusses the impact of tariffs on China's economy, highlighting that the initial tariffs have minimal macroeconomic effects. However, there is a growing risk of escalation, which could significantly impact China's GDP. The People's Bank of China (PBOC) may need to act decisively to address tightening financial conditions, unrelated to the trade war. The video also explores potential retaliatory measures by China against US tariffs, considering the limitations of matching US tariff levels and the potential impact on US companies operating in China.

What is the estimated impact of the initial $50 billion tariffs on China's GDP?

• 1.0 percentage points

• 2.0 percentage points

• 0.1 percentage points

• 0.5 percentage points

What is the potential value of the second round of tariffs that could have a more significant impact on China's GDP?

• $100 billion

• $150 billion

• $200 billion

• $250 billion

What is one of the main reasons for the tightening of financial conditions in China, according to the transcript?

• Trade war with the US

• Policy adjustments and risk campaigns

• Decrease in export volumes

• Increase in foreign investments

How much in goods does President Trump suggest could be targeted by tariffs, according to the transcript?

• $350 billion

• $450 billion

• $550 billion

• $650 billion

What is a potential area China might target if it decides to retaliate against the US?

• US agricultural exports

• US companies operating in China

• US technology imports

• US financial services