https://www.scmp.com/rss/505904/feed Inflation captures the rising costs of goods and services in an economy and, as a result, the decreasing purchasing power of consumers. It is most often measured by the consumer price index (CPI), which tracks the prices people pay for a "basket" of goods and services. China has never disclosed the weighting of its CPI, but estimates suggest food, tobacco and alcohol make up about 30 per cent, with pork believed to be the most heavily weighted product. As the prices of everyday goods... en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Zhang Shidong Zhang Shidong Investors betting on a China reflation trade may be in for a reality check, as rising government bond prices and lacklustre equities point to lingering doubts about whether inflation in the world’s second-largest economy can be sustained. Yields on China’s one-year sovereign bonds have fallen by 5.5 basis points over the past three weeks, while 10-year yields are down 1.6 basis points. Over the same period, the benchmark CSI 300 Index has slipped about 1 per cent. Bond yields move inversely to... https://www.scmp.com/business/china-business/article/3349701/chinas-reflation-narrative-under-scrutiny-bond-market-signals-caution?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3349701/chinas-reflation-narrative-under-scrutiny-bond-market-signals-caution?utm_source=rss_feed Mon, 13 Apr 2026 00:00:12 +0000 Mia Nurmamat Mia Nurmamat China’s factory-gate prices rose for the first time in more than three years in March, in an early sign that the US-Israel war on Iran is starting to affect producers in the world’s second-largest economy. The producer price index (PPI) – a measure of factory-gate prices – increased by 0.5 per cent year on year in March, according to data released by the National Bureau of Statistics on Friday. The result broke a long deflationary period stretching for 41 consecutive months, with rising global... https://www.scmp.com/economy/china-economy/article/3349582/chinas-factory-gate-prices-rise-first-time-3-years-iran-war-bites?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3349582/chinas-factory-gate-prices-rise-first-time-3-years-iran-war-bites?utm_source=rss_feed Fri, 10 Apr 2026 01:32:34 +0000 He Huifeng He Huifeng China will carry out its second round of frozen pork stockpiling this year for state reserves after live hog prices in March fell to their lowest level in nearly eight years, as policymakers seek to cushion a deepening plunge that is hurting rural incomes and adding to deflationary pressure. The Ministry of Commerce said on Thursday that it would work with the National Development and Reform Commission (NDRC) and the Ministry of Finance to undertake pork stockpiling. “The Ministry of Commerce... https://www.scmp.com/economy/china-economy/article/3348920/china-boost-frozen-pork-reserves-hog-prices-tumble-multi-year-troughs?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3348920/china-boost-frozen-pork-reserves-hog-prices-tumble-multi-year-troughs?utm_source=rss_feed Fri, 03 Apr 2026 09:00:17 +0000 Ralph Jennings Ralph Jennings Andrew Tilton, chief Asia-Pacific economist at Goldman Sachs, speaks to the South China Morning Post about the long-term future of China’s economy after the “two sessions” in Beijing and ahead of an expected Xi-Trump summit – all during an oil crisis sparked by the US-Israel war against Iran. SCMP Plus readers get early access to articles in the Open Questions series. What impact will the oil shock arising from the Iran war have on the growth of Asian economies this year? Asia is greatly... https://www.scmp.com/plus/economy/china-economy/article/3348772/goldman-sachs-economist-sees-iran-war-testing-chinas-self-reliance?utm_source=rss_feed https://www.scmp.com/plus/economy/china-economy/article/3348772/goldman-sachs-economist-sees-iran-war-testing-chinas-self-reliance?utm_source=rss_feed Thu, 02 Apr 2026 07:30:04 +0000 Xinyi Wu Xinyi Wu China has sufficient leeway to cope with imported inflationary shocks from Middle East instability, a monetary-policy adviser to the People’s Bank of China said, but the country must balance those pressures with economic-growth risks. Huang Yiping, a member of the PBOC’s Monetary Policy Committee, said that China was already experiencing upwards pressure on prices. But China’s consumer price index (CPI), a key gauge of inflation, has remained below its official target of 2 per cent in recent... https://www.scmp.com/economy/china-economy/article/3348567/china-has-room-imported-inflation-economic-risks-rising-pboc-adviser?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3348567/china-has-room-imported-inflation-economic-risks-rising-pboc-adviser?utm_source=rss_feed Tue, 31 Mar 2026 13:00:08 +0000 SCMP Editorial SCMP Editorial The fallout from the American-Israeli war against Iran is worsening as the world economy faces mounting inflationary pressure caused by energy supply disruption. Export-driven economies in Asia are especially exposed and need to take immediate measures to counter the impact of supply shortages. Hong Kong has, to an extent, been shielded by the enormous Chinese economy, but it is not entirely immune. Some local industry insiders have warned that rising fuel prices may have to be passed on to... https://www.scmp.com/opinion/comment/article/3346485/hong-kong-should-work-ensure-steady-fuel-supply-amid-war-iran?utm_source=rss_feed https://www.scmp.com/opinion/comment/article/3346485/hong-kong-should-work-ensure-steady-fuel-supply-amid-war-iran?utm_source=rss_feed Sun, 15 Mar 2026 23:15:09 +0000 Luna Sun Luna Sun China’s consumer prices rose during the first two months of the year as a longer-than-usual Chinese New Year holiday drove a surge in spending, though analysts cautioned that Beijing might need to implement stronger measures to boost demand to sustain the recovery. The national consumer price index (CPI), a crucial gauge of inflation, rose by 0.8 per cent year on year during the January-February period, according to data released by the National Bureau of Statistics (NBS) on Monday. Readings for... https://www.scmp.com/economy/china-economy/article/3345926/chinas-consumer-prices-keep-rising-after-holiday-spending-surge?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3345926/chinas-consumer-prices-keep-rising-after-holiday-spending-surge?utm_source=rss_feed Mon, 09 Mar 2026 04:08:13 +0000 Xinyi Wu,Sylvia Ma Xinyi Wu,Sylvia Ma Achieving this year’s inflation target would be one of China’s top economic tasks, a prominent economist and government adviser said, as it was pivotal to accomplishing other government priorities such as boosting consumption, raising incomes and achieving the required headline growth figures. “The inflation target corresponds to a state of relative equilibrium between supply and demand,” Zhang Bin, deputy director of the Institute of World Economics and Politics at the Chinese Academy of Social... https://www.scmp.com/economy/china-economy/article/3345690/hitting-inflation-target-key-chinas-other-economic-goals-adviser-says?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3345690/hitting-inflation-target-key-chinas-other-economic-goals-adviser-says?utm_source=rss_feed Fri, 06 Mar 2026 07:00:16 +0000 SCMP Reporters SCMP Reporters This live blog is freely available to our registered users. Please log in or create an account below. For full coverage of the 15th five-year plan, including policy and economic shifts plus Trump’s visit, subscribe with our China Super March offer now. China’s top economic officials held a press conference on Friday as part of the “two sessions”, the country’s annual policymaking meetings. The leaders of the National Development and Reform Commission – Beijing’s top economic planner – the... https://www.scmp.com/economy/china-economy/article/3345694/two-sessions-2026-china-lays-out-its-economic-agenda-press-conference?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3345694/two-sessions-2026-china-lays-out-its-economic-agenda-press-conference?utm_source=rss_feed Fri, 06 Mar 2026 06:55:23 +0000 Jane Cai Jane Cai Beijing has set a relatively cautious yet pragmatic economic growth target for 2026 amid persistent domestic headwinds and escalating external pressures. A 4.5 to 5 per cent GDP growth target – the lowest since 1991 – was announced by Premier Li Qiang on Thursday at the opening session of the National People’s Congress (NPC), China’s top legislature. In delivering his annual government work report, Li reaffirmed Beijing’s aim for stronger economic growth where conditions allowed. He emphasised... https://www.scmp.com/news/china/diplomacy/article/3345621/china-targets-lowest-growth-range-1991-realistic-move-pressures-rise?utm_source=rss_feed https://www.scmp.com/news/china/diplomacy/article/3345621/china-targets-lowest-growth-range-1991-realistic-move-pressures-rise?utm_source=rss_feed Thu, 05 Mar 2026 14:30:20 +0000 Xinyi Wu Xinyi Wu Rising energy costs driven by Middle Eastern geopolitical tensions may provide some relief to China’s years-long struggle with weak prices, but analysts warn that a spike in oil prices could spark a scenario in which stagnant economic growth collides with rising inflation, hindering the nation’s economic recovery. “Rising oil prices [could] lead to stagflation, which helps increase the inflation rate but also leads to a decline in economic growth and an increase in unemployment,” said Su Jian,... https://www.scmp.com/economy/global-economy/article/3345420/mideast-oil-crisis-revives-stagflation-spectre-haunting-chinas-deflation-battle?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3345420/mideast-oil-crisis-revives-stagflation-spectre-haunting-chinas-deflation-battle?utm_source=rss_feed Wed, 04 Mar 2026 10:00:40 +0000 Carol Yang Carol Yang Beijing has for the first time revealed the intricate composition of China’s consumer price index (CPI) basket, and a fresh recalibration sees it shift more weight towards services and new types of consumption goods. The basket adjustment itself, conducted every five years, comes as the Chinese leadership seeks to steer the world’s second-largest economy out of deflationary pressure while avoiding a prolonged Japan-style spiralling of prices. The National Bureau of Statistics (NBS) has... https://www.scmp.com/economy/china-economy/article/3343465/china-overhauls-consumer-price-basket-never-seen-unveiling-its-composition?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3343465/china-overhauls-consumer-price-basket-never-seen-unveiling-its-composition?utm_source=rss_feed Fri, 13 Feb 2026 10:00:14 +0000 Kun Tian Kun Tian China did not slip into outright deflation last year and that in itself matters. When weak global demand, geopolitical frictions and a prolonged property correction weighed heavily on sentiment, consumer prices stayed marginally positive. The latest data suggests an economy not in free fall but navigating a transition towards more balanced and sustainable growth, albeit at a subdued pace. December’s inflation figures underline this point. Consumer prices rose by 0.8 per cent year on year, the... https://www.scmp.com/opinion/china-opinion/article/3341556/chinas-deflation-near-miss-isnt-economic-story-2025?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3341556/chinas-deflation-near-miss-isnt-economic-story-2025?utm_source=rss_feed Sun, 01 Feb 2026 08:30:08 +0000 Fan Hou,Haining Gao Fan Hou,Haining Gao - https://www.scmp.com/plus/article/3339855/chinas-us12-trillion-trade-surplus?utm_source=rss_feed https://www.scmp.com/plus/article/3339855/chinas-us12-trillion-trade-surplus?utm_source=rss_feed Wed, 14 Jan 2026 07:55:31 +0000 Raymond Ma,Neil Denslow Raymond Ma,Neil Denslow Chinese inflation rose to the highest in almost three years as rising food costs masked ongoing deflationary pressures in other corners of the economy. The consumer price index climbed 0.8 per cent from a year earlier in December, the biggest gain since February 2023, according to the National Bureau of Statistics. Food costs jumped 1.1 per cent, spurred by fresh vegetables, while transport fell 2.6 per cent amid lower car prices and a slump in fuel costs. Factory-gate prices dropped for the... https://www.scmp.com/plus/article/3339311/china-prices-pick-venezuela-raid-fallout-carney-visit?utm_source=rss_feed https://www.scmp.com/plus/article/3339311/china-prices-pick-venezuela-raid-fallout-carney-visit?utm_source=rss_feed Fri, 09 Jan 2026 09:00:21 +0000 Alice Li Alice Li China’s consumer prices stayed unchanged from the previous year in 2025 while factory-gate prices fell by 2.6 per cent, suggesting lingering deflationary pressures and underscoring the need for further efforts to boost prices in 2026. The flat annual reading of the consumer price index (CPI), a major inflation indicator, missed the official 2 per cent growth target for the metric unveiled in March and slowed from the 0.2 per cent increase in 2024, according to data released by the National... https://www.scmp.com/economy/economic-indicators/article/3339263/chinas-consumer-prices-stay-flat-2025-amid-focus-price-wars-domestic-demand?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3339263/chinas-consumer-prices-stay-flat-2025-amid-focus-price-wars-domestic-demand?utm_source=rss_feed Fri, 09 Jan 2026 03:27:08 +0000 Zhang Shidong Zhang Shidong A brief rebound in Hong Kong stocks, spurred by an improved China inflation reading, waned on Friday, as investors suspect that the easing deflationary trend could just be a blip. The Hang Seng Index closed 0.3 per cent higher at 26,231.79, trimming a gain of as much as 0.6 per cent. The Hang Seng Tech Index rose 0.2 per cent. On the mainland, the CSI 300 Index climbed 0.5 per cent and the Shanghai Composite Index added 0.9 per cent. Alibaba Group Holding rallied 2.7 per cent to HK$146.50 and... https://www.scmp.com/business/china-business/article/3339256/hong-kong-stocks-snap-2-day-decline-china-deflationary-pressure-wanes?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3339256/hong-kong-stocks-snap-2-day-decline-china-deflationary-pressure-wanes?utm_source=rss_feed Fri, 09 Jan 2026 02:34:11 +0000 Alice Li,Sylvia Ma Alice Li,Sylvia Ma As the period covered by China’s next five-year plan begins, the official newspaper of the country’s ruling Communist Party urged local governments to curb the herd behaviour that could fuel “involution” – the fierce competition that has driven down prices and undermined sustainable growth within several industries. “China has a vast territory, and the imbalances between regions and between urban and rural areas remain significant. There is no one-size-fits-all solution for high-quality... https://www.scmp.com/economy/china-economy/article/3339062/china-discourages-trend-chasing-among-officials-warning-involution?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3339062/china-discourages-trend-chasing-among-officials-warning-involution?utm_source=rss_feed Wed, 07 Jan 2026 12:00:12 +0000 Junjie Wang Junjie Wang – https://www.scmp.com/plus/article/3338984/price-wars-china?utm_source=rss_feed https://www.scmp.com/plus/article/3338984/price-wars-china?utm_source=rss_feed Wed, 07 Jan 2026 02:55:43 +0000 Carol Yang Carol Yang As China grapples with persistent deflationary pressure, scholars from one of the country’s top universities have urged the government to take more forceful action to prevent the economy from becoming trapped in a Japan-style downward spiral. Beijing should adopt a binding inflation target and make reviving price growth a top priority, they argued, pointing to Japan’s “lost decades” as a cautionary tale of how deflation can become deeply entrenched if left unchecked. “Japan’s experience has... https://www.scmp.com/economy/china-economy/article/3338472/china-must-take-action-avoid-japan-style-deflation-spiral-scholars-warn?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3338472/china-must-take-action-avoid-japan-style-deflation-spiral-scholars-warn?utm_source=rss_feed Fri, 02 Jan 2026 07:00:11 +0000 Raymond Ma Raymond Ma Efforts to boost domestic consumption amid global trade tensions and cutthroat price wars, known as neijuan (involution), were among the biggest themes affecting China’s economy in 2025. Policymakers also addressed the demographic crisis, as well as seeking to boost the private sector and build a unified national market. Hong Kong regained its global IPO crown and introduced a stablecoin regime. DeepSeek and Labubu maker Pop Mart were two of the year’s biggest corporate stories. January Official... https://www.scmp.com/plus/article/3333707/scmp-plus-year-review-2025-china-economy?utm_source=rss_feed https://www.scmp.com/plus/article/3333707/scmp-plus-year-review-2025-china-economy?utm_source=rss_feed Mon, 29 Dec 2025 08:00:08 +0000 Mia Nurmamat,Xinyi Wu Mia Nurmamat,Xinyi Wu China faces mounting pressure to ramp up stimulus as new data shows its growth engines sputtering, with retail sales growth slowing for six straight months and investment showing renewed signs of strain in November despite recent policy support. The deceleration in consumption growth and the deepening property slump underscore the challenges Beijing faces in revitalising the economy heading into 2026. Retail sales, a key gauge of consumer spending, grew in November by just 1.3 per cent, year on... https://www.scmp.com/economy/economic-indicators/article/3336420/chinas-consumption-and-investment-show-weak-performance-november?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3336420/chinas-consumption-and-investment-show-weak-performance-november?utm_source=rss_feed Mon, 15 Dec 2025 02:00:11 +0000 Brian Rhoads,Raymond Ma Brian Rhoads,Raymond Ma Chinese leaders gather for a key year-end economic conference this week against a backdrop of easing deflation concerns, booming exports and lingering trade-war threats. Policymakers will consider the direction of next year’s economic policy at the closed-door central economic work conference in Beijing as the nation moves to cool profit-sapping price wars and boost domestic demand amid a prolonged real-estate slump. The country also faces the risk of overseas trade tensions after generating a... https://www.scmp.com/plus/article/3335890/chinas-economy-can-probably-ride-out-storms-2026?utm_source=rss_feed https://www.scmp.com/plus/article/3335890/chinas-economy-can-probably-ride-out-storms-2026?utm_source=rss_feed Wed, 10 Dec 2025 09:00:45 +0000 Xinyi Wu Xinyi Wu China’s consumer prices rose for a second straight month in November, with inflation hitting its highest level in nearly two years, in a tentative sign that the country’s persistent deflationary pressure may be starting to ease. The national consumer price index (CPI), a major gauge of inflation, rose 0.7 per cent year on year last month, the largest increase recorded since early 2024, according to data released by the National Bureau of Statistics on Wednesday. The reading was slightly above... https://www.scmp.com/economy/economic-indicators/article/3335839/chinas-consumer-prices-rise-fastest-pace-nearly-2-years-november?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3335839/chinas-consumer-prices-rise-fastest-pace-nearly-2-years-november?utm_source=rss_feed Wed, 10 Dec 2025 03:25:49 +0000 Xinyi Wu Xinyi Wu As China’s traditional spirits and premium wines grapple with declining consumption, a significant shift is under way across the beverage landscape. This three-part series examines the challenges faced by Maotai town as its once-coveted baijiu liquor loses its lustre, the impact of economic shutdowns on European wine imports, and the rise of craft beer as a budget-friendly alternative for consumers seeking quality without breaking the bank. Despite the sweltering heat, the pavement outside a new... https://www.scmp.com/economy/china-economy/article/3334230/pursuit-hoppiness-why-chinas-cash-conscious-drinkers-have-embraced-craft-beers?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3334230/pursuit-hoppiness-why-chinas-cash-conscious-drinkers-have-embraced-craft-beers?utm_source=rss_feed Tue, 02 Dec 2025 07:00:09 +0000 Nicholas Spiro Nicholas Spiro In the United States, monetary policy is caught between a rock and a hard place. Cracks in the country’s resilient labour market have become more pronounced in the past months, exacerbated by US President Donald Trump’s attacks on immigration. On October 14, US Federal Reserve Chairman Jerome Powell said “the downside risks to employment have risen”, signalling a further reduction in interest rates later this month. On the other hand, inflation has remained above the Fed’s 2 per cent target amid... https://www.scmp.com/opinion/asia-opinion/article/3329195/why-cooling-inflation-no-silver-bullet-asias-economic-concerns?utm_source=rss_feed https://www.scmp.com/opinion/asia-opinion/article/3329195/why-cooling-inflation-no-silver-bullet-asias-economic-concerns?utm_source=rss_feed Thu, 16 Oct 2025 08:30:10 +0000 Xinyi Wu Xinyi Wu China’s consumer prices fell again in September as demand remained weak, while a slight narrowing of the fall in factory-gate prices gave a hint that Beijing’s efforts to curb involution – the cutthroat intra-industry competition pushing down prices in several sectors – could be making ground, even as economists said further monetary easing remained an option. The national consumer price index (CPI), a key gauge of inflation, fell 0.3 per cent year on year last month, according to data released... https://www.scmp.com/economy/china-economy/article/3329045/latest-chinese-economic-data-shows-fight-against-deflationary-pressures-not-yet-won?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3329045/latest-chinese-economic-data-shows-fight-against-deflationary-pressures-not-yet-won?utm_source=rss_feed Wed, 15 Oct 2025 02:14:12 +0000 Nicholas Spiro Nicholas Spiro Is China emerging from deflation? It might seem preposterous to ask such a question judging by the latest batch of grim economic data. Last month, consumer prices slipped back into negative territory, having contracted in annualised terms for five of the last seven months. Moreover, industrial output and retail sales expanded at the slowest monthly pace this year, while fixed-asset investment in the first eight months of 2025 suffered the steepest contraction for the period since the acute phase... https://www.scmp.com/opinion/china-opinion/article/3325955/worst-chinas-deflation-scare-now-over?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3325955/worst-chinas-deflation-scare-now-over?utm_source=rss_feed Thu, 18 Sep 2025 08:30:09 +0000 Sylvia Ma Sylvia Ma China’s consumer prices slipped back into decline in August, highlighting persistent deflationary pressures, while a narrower drop in factory-gate prices suggested Beijing’s “anti-involution” campaign may be starting to take hold. The national consumer price index (CPI), a key gauge of inflation, fell 0.4 per cent year on year last month, according to data released by the National Bureau of Statistics on Wednesday. The reading was worse than market expectations of a 0.2 per cent drop in a poll... https://www.scmp.com/economy/china-economy/article/3324962/chinese-consumer-prices-slip-back-decline-amid-deflationary-pressures?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3324962/chinese-consumer-prices-slip-back-decline-amid-deflationary-pressures?utm_source=rss_feed Wed, 10 Sep 2025 01:38:00 +0000 Brian Rhoads,Raymond Ma Brian Rhoads,Raymond Ma China unveiled new consumer-credit subsidies in a bid to boost domestic consumption as the first drop in new bank loans in 20 years compounded concerns about the pace of economic growth and deflation. The government will cover up to one percentage point of the annual interest rate for consumer loans taken out for single transactions of up to 50,000 yuan (US$6,958), according to a plan released on Tuesday. Larger purchases will be subsidised in key sectors including cars, childbirth support,... https://www.scmp.com/plus/article/3321864/china-prods-consumers-again-20-year-first-fans-slowdown-fears?utm_source=rss_feed https://www.scmp.com/plus/article/3321864/china-prods-consumers-again-20-year-first-fans-slowdown-fears?utm_source=rss_feed Thu, 14 Aug 2025 09:00:10 +0000 Xinyi Wu Xinyi Wu China’s consumer prices were unchanged last month from a year ago and producer deflation persisted, suggesting that demand remains weak in the world’s second-largest economy amid trade turbulence. The national consumer price index (CPI), a key gauge of inflation, was flat in July compared to a year ago, according to data released by the National Bureau of Statistics on Saturday. The reading beat market expectations, as a poll by financial provider Wind had forecast a 0.12 per cent decline for... https://www.scmp.com/economy/economic-indicators/article/3321299/chinas-consumer-prices-flat-july-while-producer-deflation-persists?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3321299/chinas-consumer-prices-flat-july-while-producer-deflation-persists?utm_source=rss_feed Sat, 09 Aug 2025 03:55:01 +0000 Xiaofei Xu Xiaofei Xu China's top leaders have raised concerns about excessive competition in the domestic market in recent weeks, signalling a shift in policy priorities. In a meeting chaired by President Xi Jinping on July 1, the Central Finance and Economic Affairs Commission said Beijing needs to “focus on key and difficult issues, regulate enterprises’ disorderly and low-price competition” and “guide enterprises to improve product quality and promote the orderly exit of outdated production capacity”. The... https://www.scmp.com/economy/china-economy/article/3318110/why-chinas-fight-against-excessive-competition-different-past-reforms?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3318110/why-chinas-fight-against-excessive-competition-different-past-reforms?utm_source=rss_feed Mon, 14 Jul 2025 05:57:19 +0000 He Huifeng He Huifeng China’s major protein categories – from pork to poultry – fell into a severe state of oversupply in the first half of this year, with prices declining across the board and widespread losses throughout the supply chain. Analysts said weak end-market demand and high inventory levels are weighing heavily on the breeding sector, and that while marginal improvements are expected in the second half of the year, the overall scope for recovery remains limited. The trend highlights the fragility of... https://www.scmp.com/economy/china-economy/article/3317886/plunging-pork-and-poultry-prices-put-pressure-chinese-farmers?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3317886/plunging-pork-and-poultry-prices-put-pressure-chinese-farmers?utm_source=rss_feed Sat, 12 Jul 2025 08:00:12 +0000 Brian Rhoads,Raymond Ma Brian Rhoads,Raymond Ma China’s consumer prices eked out a 0.1 per cent annual gain in June, providing some respite after four months of deflation caused by overcapacity, slowing exports and overzealous austerity compounding domestic demand concerns. Prices fell 0.1 per cent in the first six months of the year, according to the National Bureau of Statistics, even with the unexpected June increase. Producer prices dropped 3.6 per cent in June, the biggest fall in almost two years, and the 32nd decline in a row. The... https://www.scmp.com/plus/article/3317509/overzealous-austerity-worsens-chinas-demand-woes?utm_source=rss_feed https://www.scmp.com/plus/article/3317509/overzealous-austerity-worsens-chinas-demand-woes?utm_source=rss_feed Wed, 09 Jul 2025 09:00:19 +0000 Sylvia Ma Sylvia Ma Beijing’s latest push to curb price wars may help ease deflationary pressures, but analysts warn the current measures fall short of addressing deeper structural problems facing the world’s second-largest economy. China’s GDP deflator – a broad measure of prices across goods and services – has been negative since the second quarter of 2023, while consumer prices have fallen for four straight months year-on-year. To stop the deflationary spiral, Chinese authorities should address the cause: weak... https://www.scmp.com/economy/china-economy/article/3317239/china-urged-take-bolder-steps-tackle-price-wars-deflation-and-weak-demand?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3317239/china-urged-take-bolder-steps-tackle-price-wars-deflation-and-weak-demand?utm_source=rss_feed Mon, 07 Jul 2025 10:15:10 +0000 Sylvia Ma,Leopold Chen Sylvia Ma,Leopold Chen China’s consumer prices declined for a fourth straight month in May, highlighting persistent deflationary pressures driven by sluggish demand and trade tensions with the United States, which are compounding inventory strains for manufacturers. The national consumer price index (CPI), a key gauge of inflation, fell 0.1 per cent year on year last month, according to data released by the National Bureau of Statistics on Monday. The figure beat market expectations after a poll by financial provider... https://www.scmp.com/economy/china-economy/article/3313581/chinas-consumer-prices-fall-fourth-month-may-amid-weak-demand-trade-tensions?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3313581/chinas-consumer-prices-fall-fourth-month-may-amid-weak-demand-trade-tensions?utm_source=rss_feed Mon, 09 Jun 2025 02:06:33 +0000 Fan Chen,Jane Cai Fan Chen,Jane Cai China has reported a drop in consumer prices in April, unwelcome news as the country scrambles to battle deflation wrought by sky-high tariffs levied on shipments between the world’s two largest economies. The national consumer price index (CPI), a key gauge of inflation, edged down by 0.1 per cent year on year last month, according to data released by the National Bureau of Statistics on Saturday. That was nearly the same as the 0.09 per cent fall predicted by economists in a Bloomberg poll.... https://www.scmp.com/economy/economic-indicators/article/3309834/chinas-consumer-prices-fall-april-fuelling-fears-deflation?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3309834/chinas-consumer-prices-fall-april-fuelling-fears-deflation?utm_source=rss_feed Sat, 10 May 2025 03:35:34 +0000 As the latest volley was fired in the US-China trade war on Friday with Beijing hiking tariffs on US imports to 125 per cent from 84 per cent, US President Donald Trump turned up the heat on e-commerce with the third successive increase in tariffs on small parcels shipped from the mainland and Hong Kong to America. The Trump administration set a new tariff of 120 per cent on small goods shipments from China valued at US$800 or less effective May 2, ratcheting up the tariffs on items previously... https://www.scmp.com/plus/article/3306092/de-minimis-1q-gdp-reveal-and-more?utm_source=rss_feed https://www.scmp.com/plus/article/3306092/de-minimis-1q-gdp-reveal-and-more?utm_source=rss_feed Fri, 11 Apr 2025 09:02:34 +0000 As a wave of tariff hikes from US President Donald Trump washes on China’s shores – with a combined 125 per cent in import duties placed on all Chinese goods – Beijing has reported a drop in consumer prices while many exporters look inward to find new sources of revenue. The national consumer price index (CPI), a key gauge of inflation, fell 0.1 per cent year on year last month, according to data released by the National Bureau of Statistics on Thursday. That was a slightly smaller drop than the... https://www.scmp.com/economy/economic-indicators/article/3305914/chinas-consumer-prices-fall-march-trade-war-reaches-fever-pitch?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3305914/chinas-consumer-prices-fall-march-trade-war-reaches-fever-pitch?utm_source=rss_feed Thu, 10 Apr 2025 01:35:43 +0000 This latest interview in the Open Questions series features Robin Xing, chief China economist at Morgan Stanley, where he leads macro and foreign exchange research on China. Xing, who has written extensively on China’s long-term economic outlook, says it will take more than tech “dragons” to fire up the economy and discusses the “impossible trinity” that Beijing faces. An expert in topics including China’s capital flows and its supply chain transition, Xing says he uses “three Rs” to measure... https://www.scmp.com/plus/article/3302169/tech-driven-optimism-china-wont-fix-economic-ills-morgan-stanley-economist-says?utm_source=rss_feed https://www.scmp.com/plus/article/3302169/tech-driven-optimism-china-wont-fix-economic-ills-morgan-stanley-economist-says?utm_source=rss_feed Thu, 13 Mar 2025 08:52:07 +0000 Just days after China lowered its annual consumer inflation control target from around 3 per cent to around 2 per cent – following two years in which the actual reading has languished at 0.2 per cent – the National Bureau of Statistics said February’s consumer price index (CPI) fell 0.7 per cent year on year. The inflation gauge for the first two months of this year – including the movable Lunar New Year holiday – dropped 0.1 per cent compared with the same period last year, the bureau announced... https://www.scmp.com/economy/china-economy/article/3301657/chinas-january-february-cpi-falls-01-days-after-annual-inflation-control-target-lowered?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3301657/chinas-january-february-cpi-falls-01-days-after-annual-inflation-control-target-lowered?utm_source=rss_feed Sun, 09 Mar 2025 03:31:04 +0000 China’s Foreign Minister Wang Yi spoke to media on the sidelines of the annual “two sessions” meetings on Friday, taking swipes at Donald Trump without naming the US president while reinforcing China’s narrative that it seeks to nurture the development of a multipolar world. Responding to a question about how China will engage with Trump in his second term, Wang didn’t mince words: “No country should fantasise that it can suppress China and maintain good relations with China,” he said. “Such... https://www.scmp.com/plus/article/3301445/two-sessions-panama-ports-february-inflation-and-more?utm_source=rss_feed https://www.scmp.com/plus/article/3301445/two-sessions-panama-ports-february-inflation-and-more?utm_source=rss_feed Fri, 07 Mar 2025 09:06:58 +0000 This live blog has been made freely available as a public service to our readers. Please consider supporting SCMP’s journalism by subscribing. New users who download our updated app get a seven-day free trial. China’s top economic officials held a press conference on Thursday afternoon as part of the “two sessions”, the country’s annual policymaking meetings. The leaders of the National Development and Reform Commission - Beijing’s top economic planner - the ministries of finance and commerce,... https://www.scmp.com/economy/china-economy/article/3301274/chinas-chief-economic-officials-lay-out-growth-plans-press-conference?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3301274/chinas-chief-economic-officials-lay-out-growth-plans-press-conference?utm_source=rss_feed Thu, 06 Mar 2025 06:45:08 +0000 China’s relationship reset with the United Kingdom gained momentum as Chinese Foreign Minister Wang Yi attended the first UK-China Strategic Dialogue to be held since 2018 during his first trip to Britain in a decade. Co-chairing the conference with British Foreign Secretary David Lammy, Wang also met British Prime Minister Keir Starmer, who is planning a one-on-one with Chinese President Xi Jinping this year. Starmer plans to travel to Beijing, according to Politico. The Labour government has... https://www.scmp.com/plus/article/3298633/china-uk-relations-xi-meet-tech-titans-and-more?utm_source=rss_feed https://www.scmp.com/plus/article/3298633/china-uk-relations-xi-meet-tech-titans-and-more?utm_source=rss_feed Fri, 14 Feb 2025 09:48:20 +0000 China’s consumer prices picked up in January given the seasonal spending boost from Lunar New Year holiday, but analysts warned that the country still needed to battle deflationary pressure and revitalise domestic demand in 2025 as policy shifts from US President Donald Trump have made the external environment more inscrutable. The consumer price index (CPI), a major indicator of inflation, rose by 0.5 per cent year on year last month, the National Bureau of Statistics (NBS) said on Sunday,... https://www.scmp.com/economy/economic-indicators/article/3297942/china-faces-uphill-battle-boost-demand-despite-consumer-price-recovery-january?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3297942/china-faces-uphill-battle-boost-demand-despite-consumer-price-recovery-january?utm_source=rss_feed Sun, 09 Feb 2025 03:48:22 +0000 The Year of the Snake started on a promising note for China, with tourism revenues and domestic travel hitting all-time highs during the eight-day holiday period. Over the annual Lunar New Year holiday which ended last Tuesday, China’s tourism revenue climbed 7.0 per cent on year to a record US$94.2 billion, with domestic trips up 5.9 per cent to a new high of 501 million, according to data released by the Ministry of Culture and Tourism. Foreign tourism has been bolstered by a visa-free... https://www.scmp.com/plus/article/3297730/holiday-spending-wang-yi-meet-top-eu-diplomat-and-more?utm_source=rss_feed https://www.scmp.com/plus/article/3297730/holiday-spending-wang-yi-meet-top-eu-diplomat-and-more?utm_source=rss_feed Fri, 07 Feb 2025 09:11:12 +0000 As deflationary pressures persist across China amid weak domestic demand and knock-on effects from industrial overcapacity, Beijing appears hard-pressed to lower the national inflation-control target for the first time in four years. The vast majority of Chinese provinces have already slashed their consumer price index (CPI) targets to about 2 per cent for 2025 – markedly down from last year’s norm of 3 per cent. The adjustments came after China’s national CPI grew by a mere 0.2 per cent last... https://www.scmp.com/economy/economic-indicators/article/3295660/deflation-risks-see-most-chinese-provinces-shy-away-legacy-3-cpi-target?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3295660/deflation-risks-see-most-chinese-provinces-shy-away-legacy-3-cpi-target?utm_source=rss_feed Tue, 21 Jan 2025 10:30:08 +0000 Despite a series of aggressive fiscal stimulus measures, China’s consumer prices rose by just 0.2 per cent last year, with analysts noting that the world’s second-largest economy continues to face significant challenges in overcoming deflation and revitalising domestic demand. The consumer price index (CPI), a key measure of inflation, rose by 0.1 per cent year on year last month, the National Bureau of Statistics (NBS) said on Thursday – lower than the growth of 0.16 per cent estimated in a... https://www.scmp.com/economy/china-economy/article/3293988/chinas-consumer-inflation-falls-short-expectations-close-out-year?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3293988/chinas-consumer-inflation-falls-short-expectations-close-out-year?utm_source=rss_feed Thu, 09 Jan 2025 01:36:56 +0000 Chengxin Zhang Chengxin Zhang Since 2022, China’s economy has been haunted by a weak recovery. Real gross domestic product (GDP) growth has fallen below 5 per cent for two consecutive quarters this year, posing challenges for Beijing to achieve its annual growth target of around 5 per cent. The International Monetary Fund estimates that the proportion of China’s nominal GDP in US dollars relative to that of the US will be around 62.6 per cent in 2024. How can China get out of its current economic dilemma? Domestic... https://www.scmp.com/opinion/china-opinion/article/3291378/china-cant-rely-technology-panacea-economic-recovery?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3291378/china-cant-rely-technology-panacea-economic-recovery?utm_source=rss_feed Mon, 23 Dec 2024 01:30:09 +0000 China’s consumption growth continued to disappoint in November, with retail sales growth falling below the 5 per cent level for a ninth consecutive month. The reading of 3.0 per cent missed the consensus forecast of economists polled by financial data provider Wind of 5.3 per cent, and it was below October’s retail sales growth of 4.8 per cent, the strongest pace of consumer spending growth since February’s 5.5 per cent. Consumption is in focus of late, as the government has acknowledged its... https://www.scmp.com/plus/article/3291004/chinas-consumers-stay-frugal-drumbeat-downbeat-data-continues?utm_source=rss_feed https://www.scmp.com/plus/article/3291004/chinas-consumers-stay-frugal-drumbeat-downbeat-data-continues?utm_source=rss_feed Mon, 16 Dec 2024 09:01:55 +0000