China Can Beat Back Deflation

Since the COVID-19 pandemic, China has been facing deflation driven by weak domestic demand and external pressures such as high tariffs and geopolitical tensions. Despite these challenges, the government is implementing measures to stabilize the economy, particularly in the real estate sector, and to clarify the roles of private and state enterprises. By leveraging its technological strengths and targeted fiscal policies, Spence suggested that China has the potential to restore growth momentum in the coming years. 

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