Why China’s Deflation Crisis is Getting Worse

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On Thursday, China released its inflation figures for January, revealing a fourth successive monthly decline in the CPI. This might sound like a good thing – but a super-weak consumer confidence, combined with crises in the property and stock markets, is deeply worrying the CCP.

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1 – https://think.ing.com/articles/china-begins-year-of-the-dragon-with-weak-economic-momentum/#a2
2 – https://www.ft.com/content/14b056b2-ab71-4f32-b829-9493c4bfd650
3 – https://www.bloomberg.com/news/articles/2024-02-08/what-china-s-persistent-deflation-means-for-the-world
4 – https://www.bloomberg.com/news/articles/2024-02-08/what-china-s-persistent-deflation-means-for-the-world
5 – https://www.ft.com/content/14b056b2-ab71-4f32-b829-9493c4bfd650
6 – https://www.ft.com/content/14b056b2-ab71-4f32-b829-9493c4bfd650
7 – https://www.bloomberg.com/news/articles/2024-02-08/china-is-oversupplied-with-commodities-as-deflation-persists
8 – https://www.bloomberg.com/news/articles/2024-02-03/china-economy-weak-pork-demand-for-lunar-new-year-highlights-deflation-woes
9 – https://www.investopedia.com/articles/personal-finance/030915/why-deflation-bad-economy.asp
10 – https://jobenomics.com/consumption-based-economy/
11 – https://www.researchgate.net/publication/277941900_Household_Wealth_in_China
12 – https://www.cnbc.com/2021/11/09/chinas-property-market-debt-an-issue-for-the-economy-george-magnus.html
13 – https://www.reuters.com/world/china/china-stocks-extend-bounce-regulatory-change-of-guard-2024-02-08/
14 – https://markets.ft.com/data/indices/tearsheet/summary?s=SHI:SHH
15 – https://www.bloomberg.com/news/articles/2024-02-03/china-economy-weak-pork-demand-for-lunar-new-year-highlights-deflation-woes
16 – https://www.bloomberg.com/news/articles/2024-02-03/china-economy-weak-pork-demand-for-lunar-new-year-highlights-deflation-woes
17 – https://www.bloomberg.com/news/articles/2024-02-03/china-economy-weak-pork-demand-for-lunar-new-year-highlights-deflation-woes
18 – https://www.bloomberg.com/news/articles/2024-02-03/china-economy-weak-pork-demand-for-lunar-new-year-highlights-deflation-woes
19 – https://theconversation.com/could-chinas-strategic-pork-reserve-be-a-model-for-the-us-139949
20 – https://theconversation.com/could-chinas-strategic-pork-reserve-be-a-model-for-the-us-139949
21 – https://www.caixinglobal.com/2021-10-19/full-text-xi-jinpings-speech-on-boosting-common-prosperity-101788302.html
22 – https://twitter.com/Brad_Setser/status/1695848590785016191

00:00 – Introduction
01:30 – Recent Data
03:08 – China’s Deflation Explained
06:01 – Why Deflation is Bad for China
07:43 – Sponsored Content