Setser: China Has Trillions in Additional Foreign Assets

The video discusses China's hidden foreign reserves, which are larger than officially reported, and their role in global finance. It covers Secretary Yellen's visit to China, focusing on policy discussions and potential improvements in bilateral relations. The importance of China's hidden reserves in providing global credit and the challenges of local government debt, exacerbated by COVID-19, are also analyzed. The central government's fiscal capacity is highlighted as a potential source of economic stimulus.

What are the hidden reserves of China and why are they considered important?

How has China's decision in 2010 affected its reserves and global finance?

What role do policy banks play in managing China's foreign assets?

Discuss the implications of local government debt on China's economy.

What is the difference in fiscal capacity between local and central governments in China?