China's Economy: Reasons for Optimism

In this episode of Goldman Sachs Exchanges, Allison Nathan interviews Hui Shan, Chief China Economist at Goldman Sachs Research, about the implications of recent trade talks between the U.S. and China. Hui discusses the resilience of Chinese exports despite U.S. tariffs, explaining that while some labor-intensive categories have declined, high-tech manufacturing sectors have grown steadily, and trade rerouting through other countries has occurred. She also analyzes the Trump-Xi meeting, noting China's strengthened position and potential benefits for both countries in adhering to the agreements. Furthermore, Hui addresses China's next five-year economic blueprint from the fourth plenum, emphasizing the focus on technology self-reliance and manufacturing competitiveness, and how AI could help China escape the middle-income trap. Due to these developments, Goldman Sachs has raised its near-term growth forecast for China.