China's Economic Dilemma: The Looming Threat of Deflation Amidst Supply Glut

In a troubling turn of events, the Chinese economy is grappling with an alarming supply glut that poses a significant risk of deepening deflation— a scenario that could have lasting impacts on global markets. The overflow of goods and services has led to an unintended consequence: a downturn in prices that threatens to undermine both consumer confidence and business investment within the country. As manufacturers and retailers are left with unsold stock, the ripple effects of this imbalance may extend well beyond China's borders.

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