Continuing deflationary pressures in China are now starting to spiral negatively. This could lead to a worsening economic outlook for the world’s second-largest economy, and there are growing calls for early policy action. China’s consumer price index (CPI) data released on the 9th confirmed that prices in most of the economy, except for food prices, are only barely rising amid falling incomes. China’s deflation risk grows: Core growth at lowest in three years, aggressive measures needed? (3) According to analysts from BNP Paribas and other banks and Bloomberg Economics, the gross domestic product (GDP) deflator, which indicates price trends in the Chinese economy as a whole, is expected to remain negative through 2025. The economy has been in negative territory for five consecutive quarters through April-June this year (second quarter), and if expectations are correct, this will be the longest deflationary phase since data began in 1993. Xing Ziqiang, Morgan Stanley’s chief China economist, cited falling wages and said the Chinese economy is “definitely in deflation, and probably in the second stage of deflation.” “Japan’s experience suggests that the longer deflation continues, the more Chinese authorities will eventually be forced to resort to additional stimulus measures to overcome the problem of debt deflation,” he said. Source below.
>>2 Well, when you look at the news, it seems like the Chinese economy is in a tough spot. The economic news is all about falling real estate prices and deflation.
>>4 I made Japan teach me everything. Everything from how to manufacture products to how to manage employees to how to trade with Europe and the United States. And by just doing what I was taught, I didn’t grow at all.
For over 20 years now, people have been saying every year that “China’s economy is in trouble! It will collapse within a few years!”, but when will China’s economy actually get worse? In reality, GDP has been rising steadily…
>>9 Seriously speaking, GDP is naturally going to increase. Every country has a steady increase over the long term. (Even in Japan, it is higher now in both nominal and real terms than it was 34 years ago in the bubble era in 1990.) The problem is the speed. Countries like India are growing so fast that it is predicted to surpass Japan next year.
>>9 Seriously speaking, this kind of news only covers a part of the story. The Communist Party is implementing such haphazard policies with nothing but momentum. There are two extremes: the areas that are growing and the areas that are sinking.
>>9 China’s GDP is just the numbers coming from the regions, and local officials are inflating it drastically to make it look like they’ve made progress. Do you believe that?
>>9 First of all, GDP is a big lie (even the Chinese themselves say so) The bubble burst and the sudden economic downturn became apparent in the last 3-4 years Now it’s affecting the people too, with deflation, wage cuts, unpaid wages, and a wave of unemployment This is the first time something like this has happened in the last 30 years of rapid growth.
Like Japan, if you borrow money, make wasteful investments, create a bubble, and then when that bubble bursts, you’ll have deflation. That’s obvious, right?
>>24 Cosmetics and baby products. Japanese companies are suffering due to the poor economy and the rise of domestic manufacturers. Local car manufacturers have also developed, and Japanese manufacturers are finding it difficult to compete in the world’s largest market. There may be a Chinese company that takes the world by storm, selling cheap products strengthened by deflation.
The Japanese economy will never recover even if Japanese right-wingers diss China. In fact, jobs for China, whether it’s scallops, cars, or electronic parts, are extremely important to Japan. I’m worried that Chinese defence spas will take away Japanese companies’ market share. The Chinese economy will never recover even if Chinese right-wingers diss Japan. The domestic situation is tough and Europe and the US are imposing tariffs, so it would be better to work together with South America, Asia, and Africa. In any case, no matter how much the Chinese right-wingers make a fuss about Japan, it’s useless.
The great Xi Jinping, the head of the Chinese Communist Party, will do something about it. Xi Jinping is trying to surpass Mao Zedong. It’ll be a piece of cake.
China is an invincible country, but where is the burden going? Did something happen somewhere, like they were unable to repay huge amounts and defaulted?
There isn’t a single post about Japan, so I guess their economy is in such bad shape that they can’t even hire the Wumao. Whenever China had money, there were always posts like this.
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