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

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

Assessment

Interactive Video

Business, Social Studies

University

Hard

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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.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

How has the trade war affected local government financing in China?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the implications of the $5.8 trillion of hidden debt in China?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What concerns do investors have regarding China's debt situation?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the potential risk of local governments not being backstops for financing vehicles?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the possible consequences if the US labels China as a currency manipulator?

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