What China’s CPI Data Means for the Economy

The video discusses the impact of the hog cycle on China's PPI and CPI, noting that while the hog cycle may drive CPI closer to 3%, it won't constrain PBOC policy. Tariffs on Chinese goods are inflationary, but measures like VAT cuts help mitigate this. The video also examines the potential impact of US-China tariffs on China's GDP, suggesting that temporary escalations won't significantly alter growth outlooks. Finally, it outlines possible monetary and fiscal measures, including reserve requirement ratio cuts and increased public spending, to counteract trade tensions.

What measures might Beijing policymakers implement if a trade deal collapses?

Discuss the potential role of fiscal policy in mitigating trade tensions in China.