China's Current Account-Balance May Shift to Annual Deficit, StanChart Says

The video discusses the slowdown in China's exports and imports, highlighting the impact of US-China trade tensions and structural economic factors. Despite these challenges, China's trade surplus has increased, particularly with the US. Looking ahead, China's economic outlook is influenced by soft external demand and potential policy adjustments. The People's Bank of China (PBOC) may have room to ease monetary policy, while fiscal policy is expected to play a significant role in addressing economic challenges. The government may increase the budget deficit and local government bond issuance to counteract trade negotiation consequences.

What are the expected changes in the budget deficit and local government bond issuance in 2019?

Discuss the potential impact of the US-China trade negotiations on China's economy.