BLUF

China is experiencing deflation, signalling a loss of hope and optimism, impacting the psychological state of the population.

Summary

  1. Foreign investors, pivotal in China's economic rise, are now wary.
  2. Previous expectations of China's unstoppable growth are outdated.
  3. Significant economic restructuring is needed.
  4. Real estate constitutes 25-35% of China's GDP and contributes to deflation.
  5. Deflation poses a bigger challenge than inflation.

References