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China actively discusses the United States. When the empire negotiates, it is because the balance of power escapes. Inside all vaccination: prices dropped, exports derailed, consumption died, the economy is slowed. It seems that this giant slips on a dangerous slope. If Beijing still hopes to restore his international image, it can be because inner, nothing appears.
In short
- In April ICC dropped by 0.1 % and PPI by 2.7 %, signaling root deflation.
- Beijing redirects its exports to the internal market, but demand remains structurally low.
- JD.com and Freshippo are mobilized to sell unsold shares for lack of sufficient solvents.
- Restoration suffers from customs tariffs: breaking American beef in China, the price in the United States.
Consumption: an economy that flashes, a threat that settles in China
The deflation is hidden in China. Consumer prices fell for three months in a row. The CPI index fell in April 0.1 %and prices of production prices (PPI) 2.7 %. This continuous drop is not just a statistical character. It reveals Loss of consumer confidence. And when households stop shopping, the whole economic building is shaken.
China is no longer this pulsating hive. Loan is more accessible, banks injecting liquidity but Houses no longer buy. For what? Too much debts, a bubble with real estate to burst, an uncertain labor market. A Chinese citizen keeps his money because we leave a candle in the event of electricity failure.
Food is also affected. The price of food has dropped 0.2 %.
” Consumers remain careful about economic uncertainty», We read in the official report quotedSouthern china Morning post.
In spite of a decline in prices, Fear prevails over envy.
Too much for sale, not enough buyers: interior trap
China, in the face of exports, slowed commercial tensions have issued an unexpected card. Asks for its manufacturer redirect your products to the home market. Economic recycling that is a problem: If no one wants to buy, this maneuver just makes a bubble.
- -0.1 % : decrease in CPI index in April;
- -2.7 % : PPI fall per year, stronger decrease in 6 months;
- +0.3 % : symbolic increase in prices in service;
- 0 % : Real growth in several analyzed urban areas;
- +13.1 % : Industrial production bond in January February, followed by net slowing.
JD.com and Freshippo have been mobilized to help sell surpluses. However, the sale of a commodity to an impartial client remains a risky bet. CNBC warns:
Deflation could deteriorate if the supply exceeds anemic demand.
And this imbalance is seen by foreigners. In the United States, Chinese restaurants are trying to supply. Customs prices weigh logistics channels. In China, highly ending the device is trying to offer American beef. SCMP underlines:
China’s New York restaurants adjust their offers to compensate for price increases.
Especially the dishes are changing, so it is that the economy spends badly.
Measures of recovery or sparadrap on an open fracture?
Chinese Central Bank decreases rates. Targeted rental programs were running. The state supports certain key sectors. Still, Economic machine still coughing. These cash injections are more like a bandage than a real surgery.
Big words are no longer enough. The consumer is waiting. He wants guarantees, not slogans. Fear of future brain consumption. And the Chinese economic miracle is now a poorly executed magical turn.
Beijing also relies on logistics reorganization. Encourage local sales trying to absorb outdoor shocks. But again with the strategy Očková. Folding down is not a permanent solution. The economy based on exports is not perverted by regulation.
The situation is reminiscent of the proverb: We do not work an ocean with a ladle. And during this time networks remain empty in Chinese cuisine, as in economic projections.
China is looking for a solution. According to the analyst Blackrock, she could turn to crypts or gold as stability reserves. And after all, isn’t it the second largest Bitcoin holder in the world? What seemed to be an exorcard may become a strategy.
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Blockchain and crypto revolution! And the day when the impacts will be felt on the most vulnerable economy of this world, I would say against all the promises that I was there for something
Renunciation
The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.