Alicia García-Herrero

Alicia García-Herrero, an economist specializing in China, discusses why China is facing structured deceleration and the deflationary trend it brings. She highlights the real estate bubble, demographics collapse, lack of economic productivity, and the impact of China's economy on the Belt and Road Initiative.

Alicia García-Herrero, a senior fellow at Bruegel focusing on China and international economics, and Jürgen Matthes from the German Economic Institute, delve into the implications of the undervalued yuan on Europe's economy. They explore the stark trade deficit that has emerged since the pandemic and discuss China's pricing strategies, often undercutting Western competitors by 30-50%. The conversation highlights the need for effective policy responses, weighing the risks of protectionism against the urgent necessity for action to prevent hollowing out European industries.

Théo Storella, a research assistant specializing in China affairs, and Alicia García-Herrero, a senior fellow at Bruegel, discuss the evolving strategies of European firms in China. They reveal insights from their research, highlighting four strategic approaches: doubling down, hedging, hibernating, and exiting. The conversation touches on the challenges posed by deflation and declining foreign investment, as well as the need for European companies to diversify their operations. They emphasize the importance of adapting to China's complex market while considering broader economic trends.

Alicia García-Herrero, a senior fellow at Bruegel specializing in the Chinese economy, and Alfred Schipke, a professor at Lee Kuan Yew School of Public Policy, dive into China's new stimulus package. They unravel its design as a rescue for the ailing economy, particularly its focus on real estate and local government debt. García-Herrero likens it to a cleanup effort, while Schipke points out the lack of direct support for households. They argue for necessary structural reforms to bolster long-term recovery amidst these economic maneuvers.

Yuyun Zhan and Alicia García-Herrero discuss China's economic engagements in Africa, addressing criticisms on FDI, trade, and opacity. They compare China's impact to Europe, debt restructuring challenges, manufacturing hurdles, US/Europe vs. China's approaches, and China's investments in tech and infrastructure.