China Can't Match U.S. Tariffs in Kind

The video discusses the trade dynamics between the US and China, focusing on the trade imbalance and potential tariffs. It highlights China's limited options for retaliation, such as removing US crude oil from its tariff list due to market conditions. The discussion also covers China's potential strategies, including regulatory measures, currency stabilization, and long-term initiatives like the Made in China 2025 and Belt and Road projects. The video emphasizes the complexity of the trade relationship and the strategic considerations for both nations.

What was the total trade value between the US and China in 2017?

• $505 billion

• $660.5 billion

• $200 billion

• $155 billion

Why did China reverse its decision to add US crude oil to its tariff list?

• To increase oil prices

• Because of a tight physical oil market

• Due to a surplus in the oil market

• To support US oil companies

What is one non-tariff measure China could use against the US?

• Reduce FX reserves

• Increase tariffs on US goods

• Stabilize the yuan

• Create regulatory barriers

What is the purpose of China's Made in China 2025 initiative?

• To reduce foreign investments

• To promote high technology development

• To stabilize the yuan

• To increase agricultural exports

How might China respond to US actions in the long term?

• By devaluing the yuan

• By restricting rare earth exports

• By selling US treasury bonds

• By increasing imports from the US