Posted 1/23/2024, 6:15:02 AM
China Faces Deflationary Pressures and Stagnation, Echoing Japan's 'Lost Decade'
- China is facing deflationary pressures and economic stagnation reminiscent of Japan in 1999
- Weak consumer spending, disappointing reforms, and reluctance to cut rates contributing to market selloff
- Reformer Zhu Rongji shook up state-owned enterprises in 1999, but reforms have stalled under Xi Jinping
- Warning signs apparent in 1999 were ignored globally, leading to problems like the Lehman shock and euro crisis
- Premier Li Qiang is spinning China's weak growth data, but deflation signals broader economic troubles