China slips into deflation as post-Covid recovery falters

Whoopsie!

I thought the centrally planned, Economy was the wave of the future according to the apologists for autocracy?

Turns out, not so much. Even including stealing all it's technology, the CCP cannot manage it's economic house any better than any other thug-ocracy.

I like how this article explains how deflation impacts an economy to the audience of JAPAN Today.

This and recessions have been what Japan's economy has been about since the bubble burst three decades ago.

So, it turns out that oppressing your country's people, funneling trillions to your military rather than public welfare, committing genocide, cracking down on businesses that don't follow Xi Jinping Thought, illegally occupying your neighbors' territory, stealing other countries' technology, and ***ing off all your trading partners for decades... somehow doesn't* make for a good economy? Who'd have thought it?

And, as I said on another thread, this is official "data with Chinese characteristics," so the real picture in the country is undoubtedly far, far worse.

Of course, Xi will say that it's not his catastrophic policies that are to blame, but the people who fail to correctly implement his faultless Imperial Edicts.

CCP's crackdown on its own people and businessmen is the main reason behind this deflation. We have a living example of Jack Ma. For the new generation of China, Jack Ma was a role model and inspiration to dream big and achieve their goals. His growing popularity and influence among youth were taken as a threat by CCP.

Ongoing turmoil in real estate, a sector that has long accounted for a quarter of China's GDP, is the "main source" for this "deflationary shock", said economist Andrew Batson of Gavekal Dragonomics.

Another real estate bubble like Japan.

https://blogs.lse.ac.uk/cff/2023/03/08/is-china-turning-japanese/

And which shows how Xi and the Chinese rulers who have embraced hyper-financializtion of capital have turned away from their socialist roots.

Chinese communists used to drag landlords out and thrash them in the streets and nationalize and distribute their property, such as done with the SCAP rule post-war and which led to Japanese Bubble prosperity.

Th Chinese former communists have studied capitalist doctrine well but are falling into the same neo-liberal pitfalls leading to similar boom and bust cycles.