Deflation..not a thing here in the US since the Great Depression--is looming over China. Will this make them more amenable to terms favorable to the West?
Coin flip, I think~
www.newsweek.com
China could be facing its longest deflationary cycle since the 1960s, it has been warned, as policymakers pin their hopes on the rollout of measures aimed at stimulating the world's second-largest economy.
China has struggled to stabilize its economy since the end of President Xi Jinping's strict "zero-Covid" pandemic-era lockdowns, buffeted by headwinds such as a depressed housing market, a sector that accounts for as much as 70 percent of household wealth. Meanwhile, low wages and economic uncertainty have kept consumers cautious, further dragging on prices.
While China's statistics bureau reported the country had hit its target gross domestic product (GDP) growth on the back of a stronger-than-expected fourth quarter performance Friday, analysts point out deflation—which in 2024 continued for a second consecutive year— continues to present a long-term threat to recovery.
Coin flip, I think~

China's economy faces historic setback not seen in over half a century
Beijing hit its GDP growth target of 5 percent in 2024, according to its statistics bureau—but deflationary pressures remain.

China could be facing its longest deflationary cycle since the 1960s, it has been warned, as policymakers pin their hopes on the rollout of measures aimed at stimulating the world's second-largest economy.
China has struggled to stabilize its economy since the end of President Xi Jinping's strict "zero-Covid" pandemic-era lockdowns, buffeted by headwinds such as a depressed housing market, a sector that accounts for as much as 70 percent of household wealth. Meanwhile, low wages and economic uncertainty have kept consumers cautious, further dragging on prices.
While China's statistics bureau reported the country had hit its target gross domestic product (GDP) growth on the back of a stronger-than-expected fourth quarter performance Friday, analysts point out deflation—which in 2024 continued for a second consecutive year— continues to present a long-term threat to recovery.