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China’s Economy Is Drowning in Deflation—Why Won’t the Government Step In? China is facing an unprecedented economic challenge as deflation worsens. Since mid-2023, CPI has been in decline, prices are falling, consumer demand is weak, and business confidence is eroding. By early 2025, the latest data confirms that the deflationary trend continues. Yet, despite the downturn, why is China’s leadership reluctant to launch a rescue plan? In this video, we break it all down: 00:00:00 China finally admits to deflation—but does little to fix it. 00:10:14 How did deflation take hold? The supply-side crisis explained. 00:16:30 “New Quality Productivity” vs. Stimulating Demand—why is the government torn on economic strategy? 00:24:08 Fiscal tightening, ideology, and power struggles—why won’t Beijing intervene? 00:27:22 Without reform, how much worse can China’s deflation crisis get? While the global economy recovers, why is China stuck in stagnation? Is there still a chance to turn things around? Join us for a deep dive into China’s deflation trap!