China Is Preparing for a Worst-Case Scenario, Says China Beige Book’s Miller

The video discusses the challenges faced by local governments in China due to high debt levels and the measures being taken to stimulate the economy. It highlights China's preparations for potential negative outcomes from trade talks, including the possibility of increased tariffs. The analysis of economic indicators like PMI shows differences in support for state and private firms. Despite concerns, there is no severe economic weakness, and the Chinese government is ready to increase stimulus if necessary. The video concludes with a discussion on market trends and the potential for economic relief or downturn.

In what ways are the Chinese authorities preparing for a potential economic downturn?

What does the phrase 'calm before the storm' imply about the current economic situation in China?