Expert: China boosting domestic demand

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00:00The Chinese government has really deep pockets, let's be honest, and state companies are vowing

00:07to buy stocks to stabilize the market. How crucial is this government intervention at such a time of

00:14uncertainty for China? I think it's going to be really important. I think the area where we're

00:19going to see a lot of focus in is how to boost domestic demand. If China can unlock that,

00:24it can mitigate some of the worst elements of this escalation in the trade wars. I would say

00:32from Beijing's perspective, the good news is it will probably take a while for Chinese consumers

00:35to feel the brunt of the tariffs. What China tends to import from the US is more manufacturing parts

00:42rather than your everyday consumer goods. That's a key difference to the US where actually

00:47they're buying Chinese toys, Chinese clothing, Chinese electronics. I think consumers will feel

00:51the brunt much quicker. But the trickier challenge, right, is that Beijing's already dealing with

00:58weak consumer confidence. Boosting that is going to be key to unlocking domestic demand,

01:03but it's going to be really tricky when your country is trapped in a trade war.