China Catches Japan’s Old Deflation Problem: Analysis

A slowdown in China’s economy accompanies a decline in commodity and asset prices.
China Catches Japan’s Old Deflation Problem: Analysis
A man stands outside the construction site of a residential complex being built by Chinese real estate developer Vanke in Nanjing, Jiangsu, on Feb. 13, 2025. AFP via Getty Images
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News Analysis

China’s economy is being affected by one of Japan’s old problems: deflation, which includes falling commodity and asset prices, declining corporate profits, and slower economic growth.

Panos Mourdoukoutas
Panos Mourdoukoutas
Author
Panos Mourdoukoutas is a professor of economics at Long Island University in New York City. He also teaches security analysis at Columbia University. He’s been published in professional journals and magazines, including Forbes, Investopedia, Barron's, IBT, and Journal of Financial Research. He’s also the author of many books, including “Business Strategy in a Semiglobal Economy” and “China's Challenge.”