Chinese economy falls into deflation

[Sixers]

The Chinese economy is expected to have slipped into deflation amid signs of a faltering post-pandemic recovery, according to market forecasters.

Chinese consumer price inflation data is due to be released on Wednesday, and a Reuters poll of economists suggests it will show that prices fell by 0.4% year-on-year in July, having been flat on an annual basis in June.

[Sixers]

@Telugodura456 @Spartan @Android_Halwa @dasari4kntr @Konebhar6

[Konebhar6]

27 minutes ago, Sixers said:

The Chinese economy is expected to have slipped into deflation amid signs of a faltering post-pandemic recovery, according to market forecasters.

Chinese consumer price inflation data is due to be released on Wednesday, and a Reuters poll of economists suggests it will show that prices fell by 0.4% year-on-year in July, having been flat on an annual basis in June.

Am not an economist, but deflation is as bad as inflation and could even result in -ve interest rates. I thought Chinese economy is doing well. This is a surprise for me.

[Konebhar6]

Nice thread. Hope economists on the DB can throw the light.

US has been accusing china to have devalued their currency wantedly. Any impact of this? 

[Spartan]

thats the beauty....kada @Telugodura456

prapancham mottam inflation to reeling aite...

akkada govt is capable to lower the prices for benefit of its citizens...

[Konebhar6]

• Due to recession fears in USA, demand for products reduced in China reducing prices.
• Weak housing market in China.
• Pandemic and recent supply chain issues forced china to over manufacture and since demand has fallen, prices have reduced as well.
• Deflation is bad for China. But falling prices good for American companies and will aid in reducing inflation here.
• Companies like Tesla triggered price wars resulted in other brands reducing their prices.
• China economy growth will slow down after decades of growth.

[dasari4kntr]

Looks to me its expected.....

China is world factory....

When world is having supply chain issues and other geo political issues....importers will have inflation...exporters will have deflation...

IMO...

[Telugodura456]

There are several reasons for it :

a) Chinese govt itself is destroying sections of economy it considers "undesirable". For eg. it almost gutted tuition industry when it severely restricted it. They just did not want to create inequality in their children's access to education and also not burden them with unhealthy levels of academic burden. This destroyed billions of market cap of education industry there.

b)China severely restricted online gaming for children. Again big impact to gaming industry - but they dont care - they decided they don't want their children spending "too much" time. China wants capital to go to chip making and aircraft and not to gaming and tuition.

c) Demand remains subdued after china's draconian covid lockdowns last year - which were very unpopular.

d) Reduction of commodity prices recently also led to reduction in prices. China does not allow monopolies and market competition is very healthy in private sector. so price reductions are quickly passed on to customers.

e) Finally china decided to implode real estate carefully. Last three years there was barely any growth in house prices but salaries grew. That means housing is much more affordable now. They want their youth to be more mobile and more spending on other things

[Sixers]

9 hours ago, Telugodura456 said:

There are several reasons for it :

a) Chinese govt itself is destroying sections of economy it considers "undesirable". For eg. it almost gutted tuition industry when it severely restricted it. They just did not want to create inequality in their children's access to education and also not burden them with unhealthy levels of academic burden. This destroyed billions of market cap of education industry there.

b)China severely restricted online gaming for children. Again big impact to gaming industry - but they dont care - they decided they don't want their children spending "too much" time. China wants capital to go to chip making and aircraft and not to gaming and tuition.

c) Demand remains subdued after china's draconian covid lockdowns last year - which were very unpopular.

d) Reduction of commodity prices recently also led to reduction in prices. China does not allow monopolies and market competition is very healthy in private sector. so price reductions are quickly passed on to customers.

e) Finally china decided to implode real estate carefully. Last three years there was barely any growth in house prices but salaries grew. That means housing is much more affordable now. They want their youth to be more mobile and more spending on other things

Okkati kuda deflation ki main reason ani pinchatledu. Edo propaganda laaga undi.

[KaipuRaja]

9 hours ago, Telugodura456 said:

There are several reasons for it :

a) Chinese govt itself is destroying sections of economy it considers "undesirable". For eg. it almost gutted tuition industry when it severely restricted it. They just did not want to create inequality in their children's access to education and also not burden them with unhealthy levels of academic burden. This destroyed billions of market cap of education industry there.

b)China severely restricted online gaming for children. Again big impact to gaming industry - but they dont care - they decided they don't want their children spending "too much" time. China wants capital to go to chip making and aircraft and not to gaming and tuition.

c) Demand remains subdued after china's draconian covid lockdowns last year - which were very unpopular.

d) Reduction of commodity prices recently also led to reduction in prices. China does not allow monopolies and market competition is very healthy in private sector. so price reductions are quickly passed on to customers.

e) Finally china decided to implode real estate carefully. Last three years there was barely any growth in house prices but salaries grew. That means housing is much more affordable now. They want their youth to be more mobile and more spending on other things

Like said earlier even chinkis won’t defend their county like you do with them

inta prema dedication unodivi aa desam meeda did you ever give a thought of moving there bro? Kanisam epudina elli kodi rojulu unara ??

[Telugodura456]

29 minutes ago, Sixers said:

Okkati kuda deflation ki main reason ani pinchatledu. Edo propaganda laaga undi.

Not meant for jaffa trolls. 

[Telugodura456]

20 minutes ago, KaipuRaja said:

Like said earlier even chinkis won’t defend their county like you do with them

inta prema dedication unodivi aa desam meeda did you ever give a thought of moving there bro? Kanisam epudina elli kodi rojulu unara ??

Yendho nee emotions. Indhulo defend emundhi.

[KaipuRaja]

4 minutes ago, Telugodura456 said:

Yendho nee emotions. Indhulo defend emundhi.

Not just the above comment bro but overall ga from your liking towards CCP and China

[Thokkalee]

Pandemic time lo everything was historically high.. if you compare YOY, every indicator must come down.. labor market kuda tight avvaali.. US is unable to control inflation and housing costs as the job market is still very strong and wages are very high.. 

[anna_gari_maata]

11 hours ago, Spartan said:

thats the beauty....kada @Telugodura456

prapancham mottam inflation to reeling aite...

akkada govt is capable to lower the prices for benefit of its citizens...

I guess you are trolling 😂

 

Real estate crash aithe adi kooda deflation e