China to export deflation to the world as economy stumbles

China, producing cheaper goods that allow consumers to get the same quality of product for less money, thus leaving more money in people's pockets.

The Financial Times.

At the same time, cheaper Chinese exports will intensify complaints among western manufacturers about unfair competition.

Sucks to suck 🤷 Maybe try central planning, state banking, and state-controlled means of production, thus lowering the cost of manufacturing. Maybe don’t let the Finance, Insurance, and Real Estate (FIRE) sectors strip the copper out of the walls (PDF).

“China spent 20 years destroying emerging-market competitors in the manufacturing space, or at least squeezing them out of global markets. Now it’s threatening to do the same to advanced economies’ manufacturers,” added Robertson.

Nobody put a gun to Global North capitalists’ heads and made them offshore their manufacturing and de-industrialize their own countries.

Citigroup analysts said this month that falling prices in China could help to hasten moves by central banks in emerging markets to cut interest rates this year, particularly in countries that consume relatively large shares of Chinese goods.

“We as investors are only just starting to connect the dots” on how falling prices imported from China might play out across markets, said Luis Costa, global head of emerging markets sovereign debt strategy at Citigroup. “The question is the magnitude.”