HEADLINE: China's Deflationary Cycle: A Consequence of Overproduction and Centralized Control GUEST NAME: Anne Stevenson-Yang SUMMARY: China is mired in a fearful deflationary cycle driven by chronic overproduction and a government unable to shift from s

HEADLINE: China's Deflationary Cycle: A Consequence of Overproduction and Centralized Control
GUEST NAME: Anne Stevenson-Yang
SUMMARY: China is mired in a fearful deflationary cycle driven by chronic overproduction and a government unable to shift from supply-side investment to stimulating consumption, perpetuating a "race to the bottom" under CCP leadership. China faces widespread deflation, causing consumer uncertainty and stemming from government-backed overproduction. The CCP leadership pours money into factories to meet GDP targets, despite overbuilt infrastructure and property. This "involution," or economy eating itself, continues due to a lack of innovative solutions and reluctance to cede economic control.
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