China's Deflation Dilemma: A Global Economic Challenge

Chinas Economic Challenge: Deflation and Its Impact on Global MarketsChina, a major global economic power, is grappling with deflation, a persistent decline in prices for goods and services. Despite some positive signs, consumer inflation is barely positive, and producer prices have been falling for over three years. Investment in fixed assets has also seen a significant drop. This deflation is deeply rooted, particularly in the housing market, and is affecting various industries, including car manufacturing and green technologies. Beijing has launched a campaign to stabilize prices, but doubts remain about its commitment. Chinese companies are increasingly selling abroad, leading to a surge in exports and a significant trade surplus. This new export boom involves advanced goods, potentially lowering global prices and intensifying competition with countries like Japan and Germany.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.