Four flash sales in a day! China, world’s second largest economy, hit by deflation – here’s why economists are worried

China is experiencing deflation, with consumer prices dropping by 0.7% and producer prices decreasing by 2.2%. The surplus industrial capacity and reduced consumer spending are contributing to this downturn. Analysts worry that without government intervention, deflationary pressures might persist, impacting business earnings and economic growth.China is experiencing deflation, with consumer prices dropping by 0.7% and producer prices decreasing by 2.2%. The surplus industrial capacity and reduced consumer spending are contributing to this downturn. Analysts worry that without government intervention, deflationary pressures might persist, impacting business earnings and economic growth.