Trade War Can Slow China's Reforms, Credit Agricole CIB Says

The video discusses the potential impact of a trade war on China's economic growth, highlighting the need for monetary and fiscal policy adjustments. It explores China's strategies to reduce international tensions by offering reciprocal access to foreign investors. The discussion also covers China's reliance on technology from other countries and its efforts to maintain competitiveness. Finally, the video analyzes China's inflation rates and the PBOC's monetary policy, emphasizing the focus on supporting economic growth.

What is the estimated impact on China's economic growth if a full-blown trade war with the US occurs?

• Growth would slow by 2.5 to 3 percentage points

• Growth would increase by 2.5 to 3 percentage points

• Growth would remain unchanged

• Growth would slow by 1 percentage point

What could China do to reduce trade tensions with other countries?

• Increase tariffs on all imports

• Offer reciprocal access to foreign investors

• Focus solely on domestic technology development

• Close its service sector to foreign businesses

How does China plan to address the challenge of being cut off from US technology?

• By improving relations with Germany and other technology providers

• By solely relying on domestic technology

• By abandoning technology development

• By increasing tariffs on US technology

What does a high Producer Price Index (PPI) indicate for Chinese companies?

• Lower profitability

• Higher profitability

• Decreased competitiveness

• Increased debt

How does the current inflation rate affect the PBOC's monetary policy?

• It allows the PBOC to relax monetary policy

• It requires the PBOC to increase interest rates

• It has no impact on monetary policy

• It forces the PBOC to tighten monetary policy