We Study Billionaires - The Investor’s Podcast Network TIP292: Understanding the Chinese Economy w/ Leland Miller (Business Podcast)
Apr 17, 2020
Leland Miller, President of China Beige Book International and a sought-after expert on China's economy, dives deep into the workings of the Chinese central bank and its interest rate manipulations. He reveals the underlying factors of the US-China trade war, arguing that real drivers go beyond common misconceptions. Miller also discusses the shift towards sustainable growth in China, the complexities of shadow banking, and how these elements impact global investment strategies.
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China's Yuan Strategy
- China aims for a stable Yuan, with a slight appreciation bias, to boost domestic consumption.
- A stronger Yuan empowers households to purchase more, supporting a shift towards a consumption-based economy.
US-China Trade War Hiatus
- The US-China trade war is currently on hold after the phase one deal, focusing on Chinese purchase commitments.
- The deal's success depends on China meeting purchase targets, which is uncertain beyond the first year.
Trade War Misunderstandings
- The US-China trade war is primarily about the bilateral trade deficit, not structural issues like IP theft.
- Focusing solely on purchases is a missed opportunity to address deeper problems.