Part 3/10:
Factors Fueling China's Deflationary Spiral
Several intersecting issues have led to the current economic malaise:
Weak Consumer Spending: Household confidence remains low due to economic uncertainty, causing consumers to postpone significant purchases.
Property Market Slump: The ongoing downturn in the real estate sector has led to decreasing property prices, diminishing investments.
Regulatory Crackdowns: Increased regulations in tech and finance sectors are resulting in job losses and wage reductions that ultimately dampen purchasing power.
Overproduction in Manufacturing: Government policies aimed at uplifting high-tech manufacturing have contributed to oversupply in certain sectors, forcing price reductions, further intensifying trade tensions.