• Latest
  • Trending
  • All
  • Industry
  • Compliance
  • Global Trade
  • Industry
  • Sustainability & Ethics
  • Video
  • Security & Risk
Aerial view of Shanghai skyline, showcasing modern skyscrapers and the Oriental Pearl Tower. Concerns about China's economic landscape, including deflation and consumer confidence, are reflected in the image's depiction of the city. - Supply Chain News

Evaluating China’s Economic Landscape: Analyst Warns of Deflation and Lower Consumer Confidence

01/22/2024
Netanyahu at White House as Trump Hints at New Tariffs

Netanyahu at White House as Trump Hints at New Tariffs

07/08/2025
Reciprocal Tariff Deadline Extended to August 1 as Trump Renews Duty Threats

Reciprocal Tariff Deadline Extended to August 1 as Trump Renews Duty Threats

07/08/2025
Trump Extends Tariff Deadline, Warns of New Duties Up to 40%

Trump Extends Tariff Deadline, Warns of New Duties Up to 40%

07/08/2025
Trump Sets 25% Tariffs on Japan, South Korea, Adds Duties for 12 Nations

25% Tariffs on Japan, South Korea Set, Plus New Duties for 12 Nations, Trump Confirms

07/08/2025
Trump Extends Tariff Deadline for 14 Countries Until August

Tariff Deadline for 14 Countries Extended Until August, Says Trump

07/08/2025
Innovative Filtrex Techno Engineering India Pvt. Ltd. Earns Nomination for Go Global Awards 2025

Innovative Filtrex® Expands Global Presence with Sustainable Engineering and Clean Energy Solutions

07/07/2025
Innovative Filtrex Techno Engineering India Pvt. Ltd. Earns Nomination for Go Global Awards 2025

Innovative Filtrex Techno Engineering India Pvt. Ltd. Earns Nomination for Go Global Awards 2025

07/07/2025
Q2 U.S. Auto Sales Grow, While Tariffs Threaten Higher Prices

Q2 U.S. Auto Sales Grow, While Tariffs Threaten Higher Prices

07/03/2025
Rising Import Costs Put Pressure on U.S. Restaurants Amid Tariffs

Rising Import Costs Put Pressure on U.S. Restaurants Amid Tariffs

07/03/2025
Vietnam Trade Deal Secured as U.S. Prepares for Tariff Changes

Vietnam Trade Deal Secured as U.S. Prepares for Tariff Changes

07/03/2025
U.S. and Vietnam Reach Trade Agreement Including New 20% Tariff on Imports

U.S. and Vietnam Reach Trade Agreement Including New 20% Tariff on Imports

07/03/2025
Uncertainty Grows as July 9 Tariff Deadline Nears Amid Ongoing Trade Talks

Uncertainty Grows as July 9 Tariff Deadline Nears Amid Ongoing Trade Talks

07/03/2025
supplychainreport
Thursday, July 10, 2025
  • Home
  • Industry
    • Supply Chain
    • Logistics & Transportation
    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
    • Market Trends
    • Economic Indicators
    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
    • Import/Export Statistics
  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
    • ITC Featured Members
    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars
No Result
View All Result
supplychainreport
No Result
View All Result

Evaluating China’s Economic Landscape: Analyst Warns of Deflation and Lower Consumer Confidence

by Richie
01/22/2024
in Economic Indicators, Global Trade, International Relations, Market Trends

YOU MAY ALSO LIKE

Netanyahu at White House as Trump Hints at New Tariffs

Reciprocal Tariff Deadline Extended to August 1 as Trump Renews Duty Threats

China might be on the brink of grappling with deflation, marking a potentially challenging period for the country’s economic growth. Shaun Rein, founder of the China Market Research Group, recently shared insights on the economic situation in China, indicating that the country could face another three to six months of a “very painful economy.”

Rein expressed caution, emphasizing the current unfavorable conditions and the notably low consumer confidence, stating that it is the lowest he has witnessed in his 27 years in China. Deflation, often linked to declining prices of goods and services, raises concerns about an economic slowdown. The depressed prices for pork in December, a significant component of China’s Consumer Price Index (CPI) basket, hinted at the possibility of deflation.

The analyst highlighted consumer behavior, stating that consumers are becoming increasingly price-conscious and waiting for discounts, contributing to an environment of nervousness. While acknowledging that deflation is a serious issue, Rein expressed surprise at the decision to keep prime rates unchanged, suggesting that a rate cut could have been a means to stimulate the economy.

Earlier this week, the People’s Bank of China maintained its one-year and five-year loan prime rates at 3.45% and 4.2%, respectively. This decision aligns with the expectations of investment banks anticipating a more sluggish pace of economic expansion in 2024. China’s official growth target for the year is set at 5%, and Premier Li Qiang highlighted a 5.2% growth in 2023.

However, there are varying projections about China’s economic growth. The International Monetary Fund forecasts a slower growth rate of 4.6% in 2024, while Moody’s predicts 4% growth for both 2024 and 2025.

Rein acknowledged the potential for a “slight rough time” for the Chinese economy, suggesting that as long as it retains 5% growth, the government may tolerate it, focusing on broader social transformation rather than immediate stimulus. He anticipates a continued painful economic period for the next three to six months as China undergoes restructuring and transformation toward a slower-growth, fairer society.

The real estate sector, which has been significantly impacted by Beijing’s crackdown on debt levels, particularly among property developers, was identified as one of the more vulnerable areas. Rein noted the reluctance of homebuyers to make purchases amid concerns about further drops in housing prices.

The evolving economic landscape in China provides crucial insights for investors and businesses navigating the uncertainties of the market.

Get the latest supply chain report news insights at The Supply Chain Report. For international trade resources, visit ADAMftd.com.

#ChinaEconomy #Deflation #ConsumerConfidence #EconomicGrowth #ShaunRein #ChinaMarketResearch #PeopleBankOfChina #InvestmentBanking #IMF #Moody’s #RealEstate #MarketInsights #BusinessStrategies #EconomicForecasting

ShareTweet

Subscribe Our Newsletter

Share Your News

Whether it’s a groundbreaking achievement, a heartwarming tale, or an insightful perspective, we want to hear it. Share your news with us, and let’s amplify your voice in the digital symphony of stories.

Submit

A man is riding a bike on a hill.

The Supply Chain Report is your essential daily news website, serving as a trusted source for comprehensive coverage of the complex and ever-evolving global supply chain dynamics. Our expert team delves into the intricacies of international trade, manufacturing, logistics, importing, exporting, and supply chain management; providing in-depth analysis and up-to-date news on the latest trends, disruptions, and technological advancements affecting industries worldwide. From detailed reports on international trade through to insights into procurement strategies and inventory management, we offer valuable content that helps professionals stay informed and make knowledgeable decisions in a fast-paced market.

Each day, we bring you cutting-edge news and expert commentary that dissect significant international trade and supply chain issues Our coverage spans a wide array of sectors including manufacturing, retail, healthcare, food, consumer goods, and technology, ensuring that no matter your field, you have the strategic information needed to navigate the challenges and opportunities of today’s supply chain landscape. By synthesizing complex data and presenting actionable insights, The Supply Chain Report empowers business leaders, policymakers, and logistics professionals to optimize their operations and drive forward with confidence in an interconnected world.

Connect With Us

  • About
  • Events
  • Privacy Policy
  • Contact Us

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.

No Result
View All Result
  • Home
  • Industry
    • Supply Chain
    • Logistics & Transportation
    • Importing & Exporting
    • Manufacturing
    • Warehousing & Distribution
  • Compliance
    • Supply Chain Transparency
    • Anti-Money Laundering (AML)
    • Know Your Customer (KYC)
    • Risk Management
    • Export Controls
    • Sanctions
  • Global Trade
    • Market Trends
    • Economic Indicators
    • Sourcing
    • Trade Policies
    • International Relations
    • Trade Agreements
    • Tariffs & Duties
    • Import/Export Statistics
  • Luxury Goods
  • Industry
    • Blockchain in Supply Chain
    • Importing & Exporting
    • Automation & Robotics
    • Artificial Intelligence in Trade
    • Data & Analytics
  • Sustainability & Ethics
    • Green Supply Chains
    • Sustainable Logistics
    • Ethical Sourcing
    • Corporate Social Responsibility
    • Environmental Policies
  • Security & Risk
    • Cybersecurity in Trade
    • Fraud & Scams
    • Risk Mitigation
    • Security Protocols
    • Data Protection
  • ITC News
    • ITC Featured Members
    • ITC Business Councils Highlights
  • Events
    • Upcoming Conferences
    • Upcoming FREE Educational Webinars

© 2024 International Centre for Trade Transparency Limited. Incorporated in the United Kingdom.