China Consumption Slump Deepens as February Prices Drop
Consumer prices in China have fallen for the first time in a year, with authorities struggling to revive spending amid intensifying trade headwinds. The country's exports are expected to be impacted by US tariffs, which could limit economic growth this year. A prolonged trade war would likely keep inflation at bay, but also mean that consumers cannot rely on exports for strong economic recovery.
- This deepening slump highlights the vulnerability of China's economy to global events, particularly those related to international trade and politics.
- How will China's government implement fiscal policies to mitigate the effects of a trade war on domestic demand and stimulate consumer spending?