China Deflation. . .

The Covid Crackdown and now the trade war have created massive issues for the Beijing economy. How will the US and China work together to get through this? We have seen how the old round robin of revenge works in trade wars. We see some preNixon China emerging and we don’t know if the US and China are drifting apart or closer together. Deflation in China is nothing to sneeze at though:

China’s falling prices are a more profound problem than U.S. inflation (yahoo.com)