BLUF
China is experiencing deflation, signalling a loss of hope and optimism, impacting the psychological state of the population.Summary
- Foreign investors, pivotal in China's economic rise, are now wary.
- Previous expectations of China's unstoppable growth are outdated.
- Significant economic restructuring is needed.
- Real estate constitutes 25-35% of China's GDP and contributes to deflation.
- Deflation poses a bigger challenge than inflation.