China’s economy is facing its biggest challenge in decades, and the authorities are running out of tools in their toolbox to address the issues, according to experts.
The country’s latest macroeconomic data point to an economy on the verge of deflation.
The June consumer price index was flat year on year and down by 0.2 percent compared with May. The producer price index, which reflects wholesale costs, declined by 5.4 percent compared to June 2022, showing a bigger drop than May’s 4.6 percent.
June’s trade data continued to show a downward trend. The dollar value of China’s exports decreased by over 12 percent year on year, a bigger drop than May’s 7.5 percent. Its imports also declined by nearly 7 percent from June 2022, compared to 4.5 percent in May….