Bloomberg Daybreak: Asia Edition China Growth Outlook, Investors Await the Fed Decision
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Dec 10, 2025 Chi Lo, a Global Market Strategist at BNP Paribas, dives into China's rapidly advancing chip manufacturing, highlighting its competitive edge despite U.S. restrictions. He forecasts China's growth rates of 4.5–5% over the next few years and discusses the impact of geopolitical tensions on trade. JoAnne Bianco, a Senior Investment Strategist at BondBloxx, anticipates a quarter-point cut from the Fed while raising concerns about inflation risks from over-easing. She advises on navigating volatility in bond markets and identifies attractive areas for fixed income investment.
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China's Chip Push Accelerated By Restrictions
- China rapidly accelerated domestic chip production partly because U.S. export restrictions forced faster self-reliance.
- Chi Lo says quality still trails the U.S. and Europe but the speed of progress is notable.
Innovation Outpaces Invention In China
- China leads in innovating applications of chips while still catching up on invention of core tech.
- Chi Lo expects tech-driven productivity gains to support longer-term Chinese economic growth.
China Likely To Hit 5% Growth Target
- China is likely to meet its 5% growth target for the year even with Q4 around 4.5%.
- Chi Lo expects 4.5–5% growth for 2026 based on current trends.