Trade War May Spark a Chinese Debt Crisis, Stevenson-Yang Says

The transcript discusses the potential consequences of Donald Trump's trade policies on China's economy, particularly focusing on the US current account deficit with China and its impact on China's debt. It highlights the importance of a stable Chinese currency for the government's power and the risks associated with China's growth driven by excessive debt. The discussion also touches on US-China trade tensions, including issues like intellectual property theft and tariffs. Finally, it examines the economic challenges China faces, such as rising defaults and inflation, due to its reliance on debt-fueled growth.

What is one potential consequence of Donald Trump's efforts to reduce the US current account deficit with China?

• A debt crisis in China

• Increased US exports to China

• Strengthening of the US dollar

• Improved US-China relations

Why is the stability of the renminbi important for the Chinese government?

• It boosts international tourism

• It reduces inflation

• It is a source of national pride

• It increases foreign investments

What has been a major driver of China's economic growth since 2008?

• Reduction in tariffs

• Increased foreign aid

• Technological innovation

• Excessive injection of debt

What challenge does China face due to its economic policies in 2016?

• Rising inflation

• Decreasing foreign investments

• Increased unemployment

• Strengthening of the renminbi

What systemic risk is highlighted in the Chinese economy?

• High levels of debt

• Over-reliance on technology

• Lack of skilled labor

• Decreasing population