Li is a strategist for BlackRock.
We'll work our way back to the United States after we start with China.
Can you give me a read on the Chinese economy after a week where people start to reset their expectations?
The Chinese Communist Party had a policy shift. What do you think about that? So far this year, we have seen that.
This pivot towards social objectives and common prosperity is greater. There was evidence in the regulatory action.
In the year before that. The growth this year has deteriorated from quarter to quarter from above.
In the first quarter, 00:3317 percent was below 5 percent. The growth levels in Q4 are looking worse than in the past.
As a result of the growth trajectory being worse, support will have to ramp up.
The Winter Olympics of 2022, characterized by the party Congress, is a significant year. We are sure enough.
Have seen support. The welfare chief or Alcott will be tough on them in the form of greater fiscal spending.
Expectations that we will continue to think that will be the case as we head into next year is why we are modest.
It was constructive. China assets are on the equity side and on the fixed income side. You are not alone. A lot.
Some people say that there needs to be more accommodations in China because of some of the issues. Over the weekend.
The Politburo of China talked about bringing down prices in the housing market.
This is a place where people live. There is a lot of talking on both sides of the mouth.
The Politburo has been maintaining a deleveraging stance over the past few weeks. It's a fine.
It isn't balance. There is always a balance between the long term journey of quality revolution and the longer term thinking about deleveraging.
The near-term support is balancing that. We have seen rhetoric that said wanting to deliver.
The private sector is thinking about the resolution offer. How will he look above ground?
Growth side needs to be made sure that the spill over effects from deleveraging activities are contained.
It's because we see easing policy coming through to make sure that the way is happening in the housing.
The housing market is properly contained and does not lead to a broader spillover of economic mobility.
Heading into next year, we don't expect a broader risk off. The warning is great.
China is moving out to its worldwide impact as it tries to give some support to its own.
The equity markets reacted to this earlier. What about the supply chain? As Jonathan was just.
The first case of Vonnie Quinn coming into China was mentioned. Are you concerned about the inflationary pressure?
If the new variant hits supply chains in China, we might see it again. You are.
The zero policy zero tolerance policy in China means that there are only crime cases in China.
We expect that there will be more impact on the supply side on the economic activity side.
Policy side things will have to come to an even more extreme because they would have to shut down the economic sites.
Their developed markets have developed market counterparts. In terms of the spillover more broadly.
We see that kind of room on the inflation side in China, but it's not as high as in the US. It is called the Communist Party.
They have room to ease a bit more if they need to, as the CPI is still reasonably contained. And if you are.
Think about what has come through with policy revolution and coordination of monetary.
China has been more reserved in their policy response, leaving them with 1 2 2 2.
The act took place at 04:22act. Our case in China is constructive because of a very low starting.
China will be added to global portfolios. Thinking about 2022. We talked about supply side constraints. We are.
Expect that to get alleviated a bit. It is harmful for next year. And the combination of robust growth dynamics.
The negative real rate environment should continue to support equities and wheezing operatives.
Market equities over emerging market equities. There is an international bias to that asset allocation.
It is possible to move away from the United States. You should mention that. RDM Equity Core has something.
A bit of a journey in 2021. The restart was way ahead of schedule so we preferred U.S. equities in the first half of 2021.
The US. At a media point, we shifted from the US to European equities as the baton of growth pick ax accelerated.
From the US to Europe. This approach to play is differentiated. The pace of restart was reflecting that.
The earnings growth in Europe and the US was due to the difference in earnings. The difference is so far away.
Not looking ahead to 2021. The pace of restart is not evenly distributed. And if you see it.
The earnings expectation difference between the U.S. and Europe is not that different.
To 15 percent. We're not playing the theme of unevenly restart. We see what I am actually seeing.
I talked about it. The combination of a negative real rate and a dynamic browser environment supports the unfairness.
The across the board was constructive. We also want to think about that.
They are battling across sectors. Growers like technology because they are always smart. Why?
Leave on Europe. The international story. China is against the United States.
