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Explainer | From Gina Raimondo visit to deflation: 4 things to look out for in China’s economy in August

  • US Secretary of Commerce Gina Raimondo could soon follow the likes of Janet Yellen, Antony Blinken, John Kerry and Henry Kissinger to visit China
  • There is also a chance deflation risks will become a reality in China, while the China-South Asia Expo will take place in Kunming

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US Secretary of Commerce Gina Raimondo looks on during a high-speed internet infrastructure announcement in the East Room of the White House in Washington in June 26. Photo: AFP/Getty Images/TNS
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1. Gina Raimondo visit?

After the likes of Janet Yellen, Antony Blinken, John Kerry and Henry Kissinger all travelled to China in recent weeks, US Secretary of Commerce Gina Raimondo said towards the end of July plans to visit China “this summer”.

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Ministry of Commerce spokeswoman Shu Jueting said in mid-July that China was open to a visit by Raimondo.

“China is currently in communication with the US regarding this matter, and China will continue to work on resolving mutual concerns and promoting constructive and pragmatic cooperation through communication,” Shu said.

Raimondo recently told a forum hosted by the American Enterprise Institute public policy think tank on the first anniversary of the US government’s Chips and Science Act that Washington is seeking “narrow” curbs on sales of advanced technology to China, with a focus on “chokepoints” that the Chinese military could use.
Her comments followed US Treasury Secretary Yellen saying last month that possible new investment curbs aimed at China would be “narrowly targeted” and focus on “a few sectors”.

2. Deflation?

Deflation risks in China heightened in June amid weak demand, with consumer prices remaining flat and a factory-gate price fall deepening further, underlining a slowing economic recovery.
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And there is a chance deflation risks will become a reality when the data for July is released in the second week of August.

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