12 China_Economic_Outlook_Flashcards
What are the main factors influencing China’s economic outlook?
A mix of government spending, subdued consumer demand, housing market corrections, and geopolitical tensions.
What challenges are present in China’s labor market?
Youth unemployment, reliance on low-skilled labor, and regional disparities in job opportunities.
Why is China’s working-age population declining, and what are the implications?
The population has peaked, leading to fewer workers, pension coverage gaps, and high health costs.
What is the significance of the Chinese real estate market in its economy?
It accounts for nearly 30% of GDP, symbolizing prosperity and being crucial for marriage and investments.
What policies has China implemented to address its real estate market downturn?
Lower mortgage rates, reduced down payments, and policies to convert excess housing into affordable units.
What are the key trends in China’s climate transition goals?
A surge in clean energy investment, emissions rebound, and a boom in technology manufacturing.
What is the Belt and Road Initiative (BRI), and how has it evolved?
A strategy to expand global trade and investment but now focuses on smaller, greener projects.
What is the ‘BRI debt trap,’ and what are its criticisms?
Critics claim it exploits countries through unsustainable loans, leading to loss of assets and sovereignty.
How does China’s trade policy influence global markets?
It promotes state-driven economic policies, raising concerns about transparency and industrial overcapacity.
What are the limitations of China’s recent monetary policy stimulus?
Weak credit demand and structural issues prevent effective stimulation of borrowing and consumption.
What is China’s digital currency campaign, and what are its implications?
The e-CNY enhances digital payments but raises concerns over surveillance and dependency on Chinese systems.
How does China’s aging population impact its economic policies?
The aging demographic pressures pensions, healthcare, and dependency ratios, requiring social reforms.
What is the role of local government financing vehicles (LGFVs) in China’s economy?
They enable local governments to finance projects but pose risks of unsustainable debt accumulation.
What are the primary geopolitical tensions affecting China’s outlook?
Conflicts in the South China Sea, U.S.-China trade tensions, and the Taiwan unification crisis.
What are the major causes of discontent among China’s importers and exporters?
Anti-dumping cases from developing nations and restrictive import controls in China.
