Are Tariffs An Answer?" We Asked Two Economists In China | Ep. Trailer | WTF is Finance Ep 4

**Nikhil Kamath** (0:00)
China is cheaper than India, even today. China is suddenly winning a lot of the generic contracts. China is so far ahead in robotics. Why is that? China, China, China, China, China.

**SPEAKER_2** (0:12)
Welcome to the annual meeting of the new champions 2026

**Nikhil Kamath** (0:16)
Since we are in China today, maybe we can begin by you telling us how the Chinese economy is doing now.
Are tariffs an answer? I've never heard an economist say so, but maybe you're the rare exception.

**Matthew C. Klein** (0:35)
Certainly not the first best option, but you can see why some people might think like, well, the tariff might correct for that. The mechanism of tariff is you're basically making it more expensive for your own people to buy things.

**Nikhil Kamath** (0:50)
Matthew, as someone living in California, is the world turning left again? Are we going back to socialism?

**Matthew C. Klein** (0:56)
Not in California. No, actually, California, San Francisco is, you know.

**Nikhil Kamath** (1:00)
If I take San Francisco out of it. No, well, is there an unsaid understanding that China will buy the American treasury, for example, or invest a part of the money back into America?

**Zhu Ning** (1:12)
I think for now, I would say largely yes. I think Chinese do find the US dollar to be still a safe asset and it's deep enough that we can deploy our capital into.

**Nikhil Kamath** (1:23)
Any last thought?

**Zhu Ning** (1:24)
Probably just one thing that is to embrace whatever comes.

**Nikhil Kamath** (1:28)
That sounds scary.