🇨🇳 China's inflation falls below 0% for the first time in 13 months – Deflation weighs on the economy

China announced that the CPI in February decreased by 0.7% compared to the same period last year, marking the first time inflation has entered negative territory since January 2024. The PPI also continued to decline sharply by 2.2%, extending the deflation trend that began in September 2022.

These numbers raise alarm bells for the world's second-largest economy, despite a series of economic stimulus packages implemented over the past year. More concerning, exports – a key growth driver – are facing new pressure from Trump's 20% tax policy.

In light of this situation, Beijing may consider enhancing economic stimulus, negotiating with the U.S. to ease trade tensions, or seeking alternative solutions to stabilize the economy.

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