China risks a spiral into deeper deflation as it diverts U.S.-bound exports to domestic market

US tariffs represent "unprecedented huge risks" to the global economy, the Chinese Minister of Finance said in an article published on his ministry's website on Tuesday.

China risks a spiral into deeper deflation as it diverts U.S.-bound exports to domestic market

Prices will need to drop for buyers for them to absorb goods meant for exports, experts warn — risking deeper deflation in China.

China risks a spiral into deeper deflation as it diverts US-bound exports to domestic market

As tariffs choke overseas demand, China is pushing exporters to shift sales home — a move that risks deepening deflation in an economy already weighed down by weak consumption and excess capacity. For the full year of 2025, Goldman Sachs expects China’s retail inflation to fall to 0%, from a 0.2% year-on-year growth in 2024, and wholesale prices to decline by 1.6% from a 2.2% drop last year. Despite the mounting calls for more robust stimulus, m…

U.S. tariffs push China into deflationary spiral as price wars erupt

U.S. tariffs push China into deflationary spiral as price wars erupt May 5, 2025 Posted by: Quatro Strategies Categories: Business & Politics, China, Sanctions & Regulation, United States No Comments Subscribe to unlock this insight. START YOUR TRIAL NOWALREADY A MEMBER? .vc_custom_1452662201783{margin-right: 0px !important;margin-bottom: 40px !important;margin-left: 0px !importan…

China's economists warn of further deflation. Redirecting exports to the domestic market could exacerbate price wars, which would bring prices down even faster. Experts call for aid from Beijing.

China risks a spiral in deeper deflation while reducing American exports to the domestic market

Shenzhen, China – April 12: A woman checks her smartphone while walking past a busy intersection for a Sam's Club membership shop and a restaurant of McDonald's on April 12, 2025 in Shenzhen, China. Cheng Xin | Getty Images News While heaven-high rates kill American orders for Chinese goods, the country strives to help exporters […]