China's Prolonged Factory Deflation Threatens Small Exporters and Jobs

• Prolonged factory deflation in China threatens smaller exporters with price wars and shrinking business • 180 million people work in export-related jobs at risk from economic woes like property crisis • Fixing deflation should be a higher priority than 5% GDP growth target • Sluggish exports mean policymakers need to stimulate household consumption more urgently • Private investment dropped last year while state investment rose, showing inefficiency of monetary policy