China May Have $5.8 Trillion Hidden Debt, S&P Says

The video discusses China's hidden debt, primarily through local government financing vehicles, amounting to $5.8 trillion. It highlights the shift from deleveraging to targeted stimulus, raising concerns about potential defaults. The US may label China a currency manipulator, complicating trade talks. China's reduction in US Treasury holdings is analyzed as a strategic move amid the trade war.

What is the primary reason for the increase in China's hidden debt?

• Decreased export revenues

• Local government financing vehicles

• Rising consumer spending

• Increased foreign investments

What shift in policy has China made regarding economic growth?

• From deleveraging to targeted stimulus

• From increasing exports to increasing imports

• From reducing debt to increasing debt

• From targeted stimulus to broad-based stimulus

What is a potential consequence of the US labeling China as a currency manipulator?

• Increased tariffs on Chinese goods

• A 12-month negotiation period

• Immediate trade sanctions

• Devaluation of the US dollar

How has China's holding of US Treasurys changed recently?

• It has increased significantly

• It has remained stable

• It has decreased gradually

• It has been sold off aggressively

What is the potential 'nuclear option' for China in the trade war?

• Increasing tariffs on US goods

• Selling off US Treasury holdings

• Devaluing its currency

• Restricting US imports