China's Deflation: How the World's Second-Largest Economy Is Responding to Downturn?
1 year, 7 months ago

China's Deflation: How the World's Second-Largest Economy Is Responding to Downturn?

News 18  

China on Wednesday reported it had entered deflation for the first time since 2021 — the latest indicator pointing to a slowdown in the world’s second-largest economy. Here’s how Beijing is attempting to reverse the downturn: – Targeted stimulus – During the global financial crisis of the late 2000s, China unveiled a massive four trillion yuan stimulus plan. In the current economic climate, households will remain “cautious about making purchases of big-ticket items given the potential risks of job losses and salary cut”, according to Ken Cheung, analyst at Mizuho Bank. – Geopolitical tensions – Some Western leaders are advocating “decoupling” from China’s economy amid tensions with Beijing. The Chinese government’s “increasingly authoritarian efforts to control Chinese society and draconian legislation like the updated anti-espionage law have also greatly eroded domestic and foreign confidence in doing business in China,” according to US-based consultancy SinoInsider.

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History of this topic

Chinese economy on shaky ground in first two months of 2025, data shows
2 weeks, 1 day ago

Chinese economy on shaky ground in first two months of 2025, data shows

Firstpost  

Data also showed that unemployment rose, while housing prices continued to fall in most major cities. File image/AFP China’s economy charted an uneven trajectory in the first two months of the year, a slew of key indicators showed Monday, muddying Beijing’s drive to boost flagging consumption. Data from Beijing’s National Bureau of Statistics on Monday offered some positive signs, showing …

Mint Quick Edit | Deflation is bad news for China’s economy
3 weeks ago

Mint Quick Edit | Deflation is bad news for China’s economy

Live Mint  

Even though policymakers in Beijing may be putting up a sanguine show, not all is well with China’s economy. Its latest official data reveals that prices in China fell 0.7% from a year earlier in February, marking the first time in more than a year that the economy is in the grip of deflation. It also makes borrowers wary of …

China, Hong Kong stocks fall on deflationary worries
3 weeks, 1 day ago

China, Hong Kong stocks fall on deflationary worries

Hindustan Times  

SHANGHAI, - China and Hong Kong stocks fell on Monday as mounting deflationary pressures heightened concerns over the country's economic recovery amid escalating global trade tensions. China, Hong Kong stocks fall on deflationary worries ** China's blue-chip CSI300 Index dropped 0.8% by the lunch break, while the Shanghai Composite Index lost 0.6%. ** Mainland property developers traded in Hong Kong …

China’s CPI falls in February, deflation problems get worse
3 weeks, 1 day ago

China’s CPI falls in February, deflation problems get worse

CNN  

Hong Kong CNN — Consumer prices in China have plunged to their lowest level in more than a year, highlighting persistent deflationary pressures in the world’s second-largest economy. The Consumer Price Index, a benchmark for measuring inflation, fell by 0.7% in February from the previous year, China’s National Bureau of Statistics said on Sunday. “The uncertainty of the external environment …

China struggles to shake off disinflationary pressures as trade threats loom
3 weeks, 2 days ago

China struggles to shake off disinflationary pressures as trade threats loom

Live Mint  

China’s consumer prices nosedived in February, in a sign of stubborn disinflationary pressures, ending a year’s run of tepid price growth and underscoring the challenges policymakers face in stimulating domestic demand as trade tensions intensify. China’s budgetary deficit targets imply a nominal growth target at 4.9% on year, as well as an expected gross domestic product deflator—the broadest measure of …

China Consumer Inflation Drops Below Zero for First Time in Year
3 weeks, 2 days ago

China Consumer Inflation Drops Below Zero for First Time in Year

Live Mint  

-- China’s consumer inflation dropped below zero for the first time in 13 months, a reading skewed by seasonal distortions but also a reminder of persistent deflationary pressures in the economy. A clearer read on China’s inflation trajectory will emerge in March, as investors look for signs that the government’s stimulus is translating into stronger domestic demand. It’s a signal …

More words than deeds from China on consumption keep deflation in play
3 weeks, 5 days ago

More words than deeds from China on consumption keep deflation in play

The Hindu  

Chinese Premier Li Qiang's renewed emphasis on consumption isn't being matched by policy firepower, say economists, who warn that the trade war with Washington and other challenges at home will likely keep policymakers in a prolonged battle with deflation. Mr. Li's government work report in front of the National People's Congress on Tuesday flagged more fiscal stimulus this year and …

Even festive spending isn't bringing cheer to sluggish Chinese economy
1 month, 3 weeks ago

Even festive spending isn't bringing cheer to sluggish Chinese economy

Firstpost  

Even as China pushes to revive consumer demand, analysts remain skeptical. Citic Securities forecasts a modest 0.3 per cent rise in consumer prices this year, with factory prices not coming up in green, but only narrowing their decline to 1.4 per cent in 2025 People wait to board trains at the Shanghai Hongqiao railway station ahead of the National Day …

Even festive spending isn't bringing cheer to sluggish Chinese economy
1 month, 3 weeks ago

Even festive spending isn't bringing cheer to sluggish Chinese economy

Firstpost  

Even as China pushes to revive consumer demand, analysts remain skeptical. Citic Securities forecasts a modest 0.3 per cent rise in consumer prices this year, with factory prices not coming up in green, but only narrowing their decline to 1.4 per cent in 2025 People wait to board trains at the Shanghai Hongqiao railway station ahead of the National Day …

China reports robust 2024 growth after wobbles prompt stimulus
2 months, 2 weeks ago

China reports robust 2024 growth after wobbles prompt stimulus

Live Mint  

SINGAPORE—China said its economy expanded by 5% last year, formally hitting its official growth target in a difficult year that saw officials respond to a sharp summertime deterioration in key indicators with its most aggressive stimulus in years. And it faces a further risk this year with U.S. President-elect Donald Trump’s pledge to impose stiffer tariffs on Chinese imports, which …

China’s economy expands 5% in 2024, hitting target helped by strong exports, stimulus measures
2 months, 2 weeks ago

China’s economy expands 5% in 2024, hitting target helped by strong exports, stimulus measures

Associated Press  

HONG KONG — China’s economy expanded at a 5% annual pace in 2024, slower than the year before but in line with Beijing’s target of “around 5%” growth, thanks to strong exports and recent stimulus measures. “Particularly, with a package of incremental policies being timely rolled out, public confidence was effectively bolstered and the economy recovered remarkably,” it said. “We …

Inflation worries in US, deflation tension in China: Two tales of two biggest economies
2 months, 3 weeks ago

Inflation worries in US, deflation tension in China: Two tales of two biggest economies

Firstpost  

While the US economy wrestles with inflation, China is battling deflation. Now, Inflation and deflation tell contrasting tales in the world’s two largest economies, as China grapples with weak domestic demand and the US contends with signs of persistent inflationary pressures. China’s deflation problem China’s consumer price inflation slowed to a near standstill in December, registering just 0.1 per cent …

China inflation hits nine-month low in December
2 months, 3 weeks ago

China inflation hits nine-month low in December

The Hindu  

China narrowly avoided slipping into deflation in December with prices rising at their slowest pace in nine months, official figures showed Thursday, as Beijing struggles to kickstart consumer activity in the world's number two economy. "Recent economic data stabilised but the momentum is not strong enough to generate upward pressure on consumer prices yet," Zhiwei Zhang, chief economist at Pinpoint …

China’s economy is burdened by years of excess. Here’s how bad it really is.
3 months ago

China’s economy is burdened by years of excess. Here’s how bad it really is.

Live Mint  

China’s go-go days are behind it as the world’s second-largest economy struggles with the bursting of the biggest real-estate bubble ever. China’s economy today is burdened with excess: Millions of empty or unfinished apartment blocks, trillions of dollars in debt straining local governments and ballooning industrial production driving an export surge that is igniting trade tensions worldwide. Nonetheless, the scale …

5 things about China’s struggle to get out of Covid shock to its economy
3 months ago

5 things about China’s struggle to get out of Covid shock to its economy

Firstpost  

China’s struggle to recover from the shock of COVID-19 in 2024 laid bare long-standing vulnerabilities in its economy. China’s economy once hailed as the engine of global growth, faced a tumultuous 2024 affected by a series of economic and geopolitical challenges. Never really recovered from COVID shock China’s economy faced a continuing sluggish recovery in 2024 due to the consequences …

China’s weak consumption drags on economy as Trump tariff threat looms
3 months, 2 weeks ago

China’s weak consumption drags on economy as Trump tariff threat looms

CNN  

Beijing Reuters — China’s industrial output growth quickened slightly in November, while retail sales disappointed, keeping alive calls for Beijing to ramp up consumer-focused stimulus as policymakers brace for more US trade tariffs under a second Trump administration. “China’s economic policies have been amazingly consistent in promoting manufacturers over consumers despite clear signs of lasting weakness,” said Dan Wang, a …

Prices won’t stop falling in China, and Beijing is grasping for solutions
3 months, 2 weeks ago

Prices won’t stop falling in China, and Beijing is grasping for solutions

Live Mint  

The country that invented paper is making way too much of it. So Shandong Chenming Paper, one of China’s biggest paper manufacturers, did what any company faced with overcapacity would do: It cut prices to unload more supply while it tried to ride out the storm. This week, China’s 24-man Politburo said it would implement more proactive fiscal policy and …

Bailing out China's economy has suddenly become more urgent
4 months, 2 weeks ago

Bailing out China's economy has suddenly become more urgent

ABC  

Beijing is clearly rattled. Trump's trade war timetable If Donald Trump lives up to his word, China is expected to lose its World Trade Organisation 'favoured nation status' with the US, as a first step, before imposing tariffs on the country and then, possibly, the rest of the world. "We are assuming a 60 per cent tariff hike on about …

China's Economic Stability: A Steady Beacon Amid Global Uncertainty
5 months ago

China's Economic Stability: A Steady Beacon Amid Global Uncertainty

China Daily  

China's economy remains a stabilizing force in the global economy, despite the challenges of global geopolitical rivalries and rising government debt. The country's structural reforms and high-quality development strategies have contributed to its stability and growth. China's commitment to high-quality development and its willingness to engage in global trade and cooperation remain crucial for maintaining its economic prosperity and stability …

$1.80 dinners and budget clothes? The spread of frugality is hurting China’s economy
5 months, 1 week ago

$1.80 dinners and budget clothes? The spread of frugality is hurting China’s economy

LA Times  

China’s 1.4 billion consumers once spent with enough abandon to help drive the global economy. While the bigger factor is a worsening real estate downturn, which has eroded demand for commodities and diminished a crucial vehicle for household wealth and investment, economists say China’s economy is unlikely to recover without a rise in domestic spending. Chinese consumers are going through …

Here’s How Bad China’s Economy Really Is. Can It Be Fixed?
5 months, 2 weeks ago

Here’s How Bad China’s Economy Really Is. Can It Be Fixed?

Bloomberg  

China’s economic growth target of 5% this year is looking ambitious, given sluggish consumer spending, an uncertain outlook for the country’s exports and a still shaky property market. Fewer than a fifth of economists surveyed by Bloomberg Terminal Bloomberg were predicting gross domestic product would expand by 5% in 2024, as analysts at lenders such as Bank of America Corp. …

China's economy softens in August as Beijing continues to grapple with lagging demand
6 months, 2 weeks ago

China's economy softens in August as Beijing continues to grapple with lagging demand

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy China’s economy softened in August, …

China’s economy fails to pick up after worst stretch in five quarters
7 months, 2 weeks ago

China’s economy fails to pick up after worst stretch in five quarters

Hindustan Times  

China’s weakening economic momentum failed to pick up as sluggish confidence weighs on consumption and investment, putting the government’s annual growth target at risk. “It tells us that maybe one day, the weakness in the demand-side will return to bite the other side.” The latest snapshot of the $17 trillion economy shows domestic demand is barely benefiting from recent government …

Foreign trade to stay resilient in second half
7 months, 3 weeks ago

Foreign trade to stay resilient in second half

China Daily  

China Daily| Updated :2024-08-05 MSC Irina, the world's largest container vessel, docks at Ningbo Zhoushan Port in Zhejiang province on April 2. JIANG XIAODONG/FOR CHINA DAILY China's foreign trade, underpinned by an improved overseas appetite, an optimized trading structure increasingly driven by high-tech and green products, and more diversified export destinations, will continue to show resilience in the second half …

Foreign trade to stay resilient in second half
7 months, 4 weeks ago

Foreign trade to stay resilient in second half

China Daily  

MSC Irina, the world's largest container vessel, docks at Ningbo Zhoushan Port in Zhejiang province on April 2. JIANG XIAODONG/FOR CHINA DAILY China's foreign trade, underpinned by an improved overseas appetite, an optimized trading structure increasingly driven by high-tech and green products, and more diversified export destinations, will continue to show resilience in the second half of the year, officials …

Xi Jinping sets the course for China's economy for the next decade as he prepares for a fourth term
8 months, 1 week ago

Xi Jinping sets the course for China's economy for the next decade as he prepares for a fourth term

ABC  

The conclusion of the Chinese Communist Party's 20th Third Plenum marks a significant moment in Chinese politics, as Xi Jinping appears to be laying the groundwork for an unprecedented fourth term. The Third Plenum's communiqué sets a reform deadline of 2029 and emphasises the decisive significance of the "Two Establishes", which solidify Xi's core position in the Party and the …

China’s Growth Rate Slows Down To 4.7 Per Cent In Apr-June Quarter As Demand Weakens
8 months, 2 weeks ago

China’s Growth Rate Slows Down To 4.7 Per Cent In Apr-June Quarter As Demand Weakens

ABP News  

China’s economy clocked a slowdown in the April-June quarter in 2024, official data revealed on Monday. The second-largest economy in the world observed a dampened sentiment in the economy as it clocked a growth rate of 4.7 per cent in the second quarter in the current calendar year, the data showed. This growth rate marked the slowest momentum for the …

China’s economy slowed in the last quarter as weak consumer demand dragged on growth
8 months, 2 weeks ago

China’s economy slowed in the last quarter as weak consumer demand dragged on growth

Associated Press  

BANGKOK — China’s economy expanded at a slower-than-forecast 4.7% annual rate in the last quarter, the government reported Monday, while emphasizing signs of improvement in factory output, income and investment. “Since the beginning of this year, global economic growth momentum has been weak, inflation is sticky, geopolitical conflicts, international trade frictions and other problems have occurred frequently, domestic demand is …

Challenging the Western narrative on the Chinese economy
9 months, 2 weeks ago

Challenging the Western narrative on the Chinese economy

China Daily  

Export-bound vehicles await loading at Lianyungang Port, Jiangsu province. WANG CHUN/FOR CHINA DAILY In the face of the constant stream of data released in May, which vividly showcases the positive signals emitted by the Chinese economy, it is crucial to take a stand against the often-biased Western narrative that attempts to distort or undermine China's remarkable economic progress. This aspect …

Challenging the Western narrative on the Chinese economy
9 months, 2 weeks ago

Challenging the Western narrative on the Chinese economy

China Daily  

Export-bound vehicles await loading at Lianyungang Port, Jiangsu province. WANG CHUN/FOR CHINA DAILY In the face of the constant stream of data released in May, which vividly showcases the positive signals emitted by the Chinese economy, it is crucial to take a stand against the often-biased Western narrative that attempts to distort or undermine China's remarkable economic progress. This aspect …

Stabilizing economy augurs well for global growth
10 months, 2 weeks ago

Stabilizing economy augurs well for global growth

China Daily  

Employees work on the production line of a tractor manufacturer in Luoyang, Henan province. ZHANG YIXI/FOR CHINA DAILY "I think the economy is stabilizing," said Ben Simpfendorfer, a partner at consultancy Oliver Wyman. He said China's economy still enjoys favorable conditions and factors, given a potential soft landing of the US economy and the stronger growth in the global economy. …

Stabilizing economy augurs well for global growth
10 months, 2 weeks ago

Stabilizing economy augurs well for global growth

China Daily  

Export-bound vehicles await loading at Lianyungang Port, Jiangsu province. WANG CHUN/FOR CHINA DAILY China's economy is showing fresh signs of stabilization with a solid first-quarter performance this year, laying a strong foundation for achieving its preset growth target of around 5 percent for 2024, said economists and global executives. Looking ahead, Liu said she believes China's 2024 annual growth target …

Stabilizing economy augurs well for global growth
10 months, 2 weeks ago

Stabilizing economy augurs well for global growth

China Daily  

Export-bound vehicles await loading at Lianyungang Port, Jiangsu province. WANG CHUN/FOR CHINA DAILY China's economy is showing fresh signs of stabilization with a solid first-quarter performance this year, laying a strong foundation for achieving its preset growth target of around 5 percent for 2024, said economists and global executives. Looking ahead, Liu said she believes China's 2024 annual growth target …

Stabilizing economy augurs well for global growth
10 months, 2 weeks ago

Stabilizing economy augurs well for global growth

China Daily  

Export-bound vehicles await loading at Lianyungang Port, Jiangsu province. WANG CHUN/FOR CHINA DAILY China's economy is showing fresh signs of stabilization with a solid first-quarter performance this year, laying a strong foundation for achieving its preset growth target of around 5 percent for 2024, said economists and global executives. Looking ahead, Liu said she believes China's 2024 annual growth target …

Stabilizing economy augurs well for global growth
10 months, 2 weeks ago

Stabilizing economy augurs well for global growth

China Daily  

Export-bound vehicles await loading at Lianyungang Port, Jiangsu province. WANG CHUN/FOR CHINA DAILY China's economy is showing fresh signs of stabilization with a solid first-quarter performance this year, laying a strong foundation for achieving its preset growth target of around 5 percent for 2024, said economists and global executives. Looking ahead, Liu said she believes China's 2024 annual growth target …

Stabilizing economy augurs well for global growth
10 months, 2 weeks ago

Stabilizing economy augurs well for global growth

China Daily  

Employees work on the production line of a tractor manufacturer in Luoyang, Henan province. ZHANG YIXI/FOR CHINA DAILY "I think the economy is stabilizing," said Ben Simpfendorfer, a partner at consultancy Oliver Wyman. He said China's economy still enjoys favorable conditions and factors, given a potential soft landing of the US economy and the stronger growth in the global economy. …

China disinflationary headwinds continue as consumers hold back
10 months, 2 weeks ago

China disinflationary headwinds continue as consumers hold back

Live Mint  

BEIJING—China’s consumer prices edged up modestly in April while its factory-gate prices continued to fall, underscoring the challenges that policymakers face in shaking off disinflationary pressures despite stimulus measures aimed at delivering a jolt to the economy. Economists say China’s persistently weak inflation readings suggest Beijing is unlikely to be able to count on the country’s 1.4 billion consumers to …

Roaring consumption engine powers China's economy ahead
11 months, 1 week ago

Roaring consumption engine powers China's economy ahead

China Daily  

Customers try smartphones in the Pura 70 series at a Huawei retail store in Shanghai on Thursday. BEIJING - China's consumption played a vital role in bolstering economic growth in the first quarter of the year, underscoring the country's steady transformation toward a domestic consumption-driven economy. China's GDP expanded 5.3 percent year-on-year in the first quarter, with domestic consumption contributing …

China reports 5.3% GDP growth for Q1
11 months, 2 weeks ago

China reports 5.3% GDP growth for Q1

China Daily  

By Ouyang Shijia | chinadaily.com.cn | Updated: 2024-04-16 10:02 China's gross domestic product expanded by 5.3 percent year-on-year in the first quarter after a 5.2 percent rise in the fourth quarter, official data showed on Tuesday, boding well for a steady economic recovery in the following months. On a quarter-on-quarter basis, China's GDP grew by 1.6 percent in the first …

China reports 5.3% GDP growth for Q1
11 months, 2 weeks ago

China reports 5.3% GDP growth for Q1

China Daily  

By Ouyang Shijia | chinadaily.com.cn | Updated: 2024-04-16 10:02 China's gross domestic product expanded by 5.3 percent year-on-year in the first quarter after a 5.2 percent rise in the fourth quarter, official data showed on Tuesday, boding well for a steady economic recovery in the following months. On a quarter-on-quarter basis, China's GDP grew by 1.6 percent in the first …

Chinese economy will continue to defy its ill-intentioned critics
11 months, 3 weeks ago

Chinese economy will continue to defy its ill-intentioned critics

China Daily  

A view of the Huangpu River in Shanghai. Nicholas R. Lardy, senior fellow at the Peterson Institute for International Economics, published an article on the website of Foreign Affairs last week titled "China Is Still Rising-Don't Underestimate the World's Second-Biggest Economy", arguing that the US academics' recent view of China already peaking as an economic power underestimates the resilience of …

Bad-mouthing China won't change trajectory of its economy
11 months, 4 weeks ago

Bad-mouthing China won't change trajectory of its economy

China Daily  

Employees work at a production facility for display units in Chongqing on March 14. In recent years, some politicians in certain Western countries have continued to try and cast a shadow over China's economy, forging and spreading various negative opinions, which actually stem from their deep-rooted zero-sum game mentality. Comprehensive analysis shows that China's economy has strong resilience and self-adjustment …

Chinese economy belies scaremongers: China Daily editorial
1 year ago

Chinese economy belies scaremongers: China Daily editorial

China Daily  

The high growth rate the Chinese economy maintained for the majority part of the past four decades seems to have made some take it for granted. They therefore view the 5.2 percent year-on-year growth of the Chinese economy last year from a glass-half-empty perspective. Yet China's economic growth rate is markedly higher than those of other major economies, including the …

China's key economic indicators pick up pace
1 year ago

China's key economic indicators pick up pace

China Daily  

China's economy gained more steam in the first two months of 2024 with improvement in key indicators, including production and investment, the National Bureau of Statistics said on Monday. China's value-added industrial output - a gauge of activity in the manufacturing, mining and utilities sectors - grew by 7 percent in the January-February period from a year earlier after a …

China's key economic indicators pick up pace
1 year ago

China's key economic indicators pick up pace

China Daily  

China's economy gained more steam in the first two months of 2024 with improvement in key indicators, including production and investment, the National Bureau of Statistics said on Monday. China's value-added industrial output - a gauge of activity in the manufacturing, mining and utilities sectors - grew by 7 percent in the January-February period from a year earlier after a …

No deflation in China but more efforts needed to defuse risks
1 year ago

No deflation in China but more efforts needed to defuse risks

China Daily  

A cashier counts RMB notes in a bank in Haian, Jiangsu province. Deducting the markedly fluctuated prices of food and energy, the core CPI rose by 0.7 percent year-on-year in 2023, indicating overall stability in the supply and demand of industrial products and services, said Jin Li, a national political advisor and vice-president of Southern University of Science and Technology. …

China says economy got a strong start in 2024, sets sights on latest technology, upgrading factories
1 year ago

China says economy got a strong start in 2024, sets sights on latest technology, upgrading factories

Associated Press  

BEIJING — China has plenty of room to maneuver to attain its annual target for robust economic growth of about 5% after a strong start for the year, top economic officials said Wednesday, though they acknowledged it’s a challenge. It’s hard to fully meet needs using existing funding channels and there’s an urgent need to increase support,” he said at …

5 reasons why China's 5% GDP growth target is in the news
1 year ago

5 reasons why China's 5% GDP growth target is in the news

Firstpost  

Analysts have been warning investors to stay away from investing in China. Goldman Sachs chief investment officer Sharmin Mossavar-Rahmani said, ‘Most people think that is not the real growth number—it was actually a lot weaker’ Premier Li Qiang addressed National People's Congress at the Great Hall of the People in Beijing on Monday. Reuters file China is still in the …

Year of the Dragon: China faces critical moment in push to revive economy
1 year, 1 month ago

Year of the Dragon: China faces critical moment in push to revive economy

Al Jazeera  

Analysts say Beijing needs to roll out measures to stimulate greater domestic consumption amid slowing growth. “China didn’t see the boost most people expected after COVID restrictions were removed in late 2022,” Kevin P Gallagher, the director of the Boston University Global Development Policy Centre, told Al Jazeera. Consumption, by contrast, is viewed as indulgent.” Shih added: “There are 1.4 …

Chinese shudders: Fewer people is bad news
1 year, 2 months ago

Chinese shudders: Fewer people is bad news

Live Mint  

For an economy already caught in a slowdown, Wednesday’s release of China’s population data made it a double whammy. China’s covid toll was estimated at about 11.1 million last year and 10.4 million in 2022. It now faces an adverse demographic turn, with fewer people who can contribute to economic activity even as an elderly bulge adds to its welfare …

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