Deflation would make Chinese goods increasingly cheap which would undercut millions of foreign companies, but there would also likely be a drop off in Chinese demand for foreign imports such as food energy and raw materials.
At the height of the pandemic many Chinese businesses were doing extremely well. While millions were stuck at home there was high global demand for medical supplies, home working kit and other online goods.
Indeed, the confidence of Chinese consumers has been seriously damaged by what they experienced in the pandemic. The problem now is that the economy finds itself with too much 'stuff' in all sorts of areas, from properties to goods, and enormous debt burdens.Add into the mix a crisis in the property market and the fact that a staggering one in five young people are unemployed and you have an economic challenge greater than China has faced for many years.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chinese economy falls into deflation as recovery stumbles\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t
Read more »
Why China Keeps Antagonizing Others in the South China SeaFrom shining lasers at Philippine ships in February to firing water cannons at them over the weekend, China keeps testing the limits of aggression in the South China Sea
Read more »
Baby 'serious but stable' in hospital after falling from windowThe one-year-old boy fell from the window on Heap Street in Burnley on Sunday morning
Read more »
Italian man crushed to death under falling cheese wheelsGiacomo Chiapparini was buried when a shelf broke in his warehouse in the Lombardy region on Sunday.
Read more »
Teen in serious condition after falling from apartment block roofA teenager is in hospital after falling from a block of flats in Preston
Read more »
Elderly man crushed to death by enormous wall of cheeseAn elderly Italian man has been crushed to death by thousands of wheels of parmesan-style hard cheese 😳
Read more »