#TradeWarEases China's inflation is falling, showing weak consumer spending. In April, CPI dropped 0.1% year-over-year, and PPI fell 2.7%, the biggest drop in six months. This is largely due to the ongoing trade war with the U.S., which has hurt China's exports and factory activity.

However, U.S. and Chinese officials recently said they're making progress in trade talks, and a deal might be close. If finalized, it could ease tariffs and help China's economy recover. May’s inflation might improve due to stronger holiday spending.

Key Points for Investors:

China's inflation is weak, signaling low demand.

A U.S.–China trade deal may be close, which could boost markets.

Watch for government stimulus in China and better data in May.