NatWest Markets' Liu on China's Inflation

The video discusses China's economic situation, focusing on inflation, growth concerns, and the impact of COVID-19. Pork prices have driven up China's CPI, but core inflation remains subdued due to weak domestic demand. The main concern is the lack of growth, exacerbated by COVID-19 lockdowns. Fiscal stimulus through infrastructure bonds is considered, but the government is cautious about aggressive measures. The COVID-19 strategy poses a significant risk to growth, but new policies may introduce more certainty.

What are the main factors contributing to the current inflation in China?

How does the current domestic demand in China affect its economic growth?

What is the government's GDP growth target for China, and how does it compare to current estimates?

In what ways might local government bonds serve as a stimulus for China's economy?

What challenges does the COVID-0 policy pose to China's economic recovery?