https://www.scmp.com/rss/519895/feed China’s economic slowdown has given rise to concerns over deflation, which occurs when the inflation rate falls into the negative, reflecting a decrease in the general price level of goods and services. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com 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 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 Xinyi Wu Xinyi Wu China’s pig prices have plunged to their lowest level in nearly eight years, as the country struggles to deal with a persistent supply glut triggered by the spread of huge industrial farms and a post-holiday drop in meat consumption. Live pigs were selling for 11.05 yuan (US$1.60) per kilogram on average during the third week of March, down 2.9 per cent from the previous week and 28 per cent from a year earlier, data from China’s Ministry of Agriculture and Rural Affairs showed. Prices are now... https://www.scmp.com/economy/china-economy/article/3348423/chinas-massive-pig-farms-spark-supply-glut-hog-prices-hit-8-year-low?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3348423/chinas-massive-pig-farms-spark-supply-glut-hog-prices-hit-8-year-low?utm_source=rss_feed Mon, 30 Mar 2026 11:30:08 +0000 Fan Hou Fan Hou To see every province-level region’s growth target, view this Quick Digest. https://www.scmp.com/plus/economy/china-economy/article/3345931/two-sessions-2026?utm_source=rss_feed https://www.scmp.com/plus/economy/china-economy/article/3345931/two-sessions-2026?utm_source=rss_feed Mon, 09 Mar 2026 05:16:08 +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 Ji Siqi Ji Siqi With local governments in China struggling to replenish their treasuries while facing growing public service obligations, Beijing is setting its sights on securing more tax revenue as a major reform goal for 2026 and the four years beyond. Compared with the previous five-year plan period’s emphasis on “tax and fee cuts”, the language in the draft of the full 15th five-year plan – released on Thursday – emphasised “maintaining a reasonable macro tax burden”. The document also pledged to... https://www.scmp.com/economy/china-economy/article/3345619/chinas-new-5-year-plan-targets-tax-reform-local-governments-face-fiscal-strain?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3345619/chinas-new-5-year-plan-targets-tax-reform-local-governments-face-fiscal-strain?utm_source=rss_feed Fri, 06 Mar 2026 03:00:13 +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 China’s leadership has stressed the need for a more proactive macroeconomic stance to support the country’s new five-year plan, ahead of next week’s annual “two sessions” – one of the country’s most important political events. Chaired by President Xi Jinping, the Politburo – a major decision-making body of the ruling Communist Party – met on Friday and set a decisive tone for policy direction, highlighting the need to expand domestic demand and strengthen new growth drivers. In an official... https://www.scmp.com/economy/china-economy/article/3344917/chinas-politburo-signals-decisive-macroeconomic-direction-ahead-two-sessions?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3344917/chinas-politburo-signals-decisive-macroeconomic-direction-ahead-two-sessions?utm_source=rss_feed Fri, 27 Feb 2026 12:30:14 +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 Xinyi Wu Xinyi Wu China’s consumer prices rose for the fourth consecutive month in January – although at a slower pace – while the decline in factory-gate prices continued to narrow, in a tentative sign that deflationary pressures in the Chinese economy may be starting to let up. But analysts said a clearer picture of the outlook for inflation would only emerge in the coming months due to distortions caused by the Lunar New Year holiday, which typically brings a surge in demand that drives up prices. The national... https://www.scmp.com/economy/economic-indicators/article/3343143/chinas-consumer-price-growth-cools-inflation-outlook-remains-unclear?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3343143/chinas-consumer-price-growth-cools-inflation-outlook-remains-unclear?utm_source=rss_feed Wed, 11 Feb 2026 03:54:09 +0000 Justin Diamond Justin Diamond Western media and policymakers enjoy wagging their fingers at China’s industrial “overcapacity”, which in reality is simply the ability to produce solar panels, batteries, electric vehicles, steel and other goods more cheaply and efficiently than others can. Yes, some industries are subsidised, but they also benefit immensely from rapid growth in technical know-how and economies of scale. China hasn’t really built too much; it’s just built too efficiently for the comfort of its competitors. The... https://www.scmp.com/opinion/china-opinion/article/3342379/how-us-can-actually-benefit-chinas-overcapacity?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3342379/how-us-can-actually-benefit-chinas-overcapacity?utm_source=rss_feed Sun, 08 Feb 2026 08:30:08 +0000 Kandy Wong Kandy Wong Beijing has recently targeted tax incentives in telecoms and other select industries after fiscal revenue dropped sharply in late 2025, fuelling market speculation of similar, larger-scale moves and triggering volatility. Here, we examine the latest developments and outline how economists view the changes. What has the Chinese government announced? Beijing has moved to boost government finances by tightening tax incentives and raising preferential rates across several sectors, following a sharp... https://www.scmp.com/economy/china-economy/article/3342339/china-raises-taxes-some-sectors-boost-finances-one-fix-or-tough-times-ahead?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3342339/china-raises-taxes-some-sectors-boost-finances-one-fix-or-tough-times-ahead?utm_source=rss_feed Wed, 04 Feb 2026 06:40:20 +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 Kandy Wong,Alice Li Kandy Wong,Alice Li China’s youth unemployment rate fell slightly in December for the fourth consecutive month, though competition for jobs remains intense as policymakers confront deflationary pressures and a labour market marked by a growing mismatch between skills and vacancies. The jobless rate for those aged 16 to 24, excluding students, fell to 16.5 per cent last month from 16.9 per cent in November, according to data released by the National Bureau of Statistics on Thursday. That figure has eased since... https://www.scmp.com/economy/china-economy/article/3340807/chinas-youth-unemployment-rate-falls-slightly-december-beijing-pledges-more-support?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3340807/chinas-youth-unemployment-rate-falls-slightly-december-beijing-pledges-more-support?utm_source=rss_feed Thu, 22 Jan 2026 07:09:20 +0000 Xinyi Wu Xinyi Wu Chinese authorities have signalled a new wave of measures to bolster domestic demand and hi-tech industries in the coming year, as Beijing seeks to rebalance growth and shore up momentum during its next five-year plan. On Tuesday, China’s top economic planner announced initiatives to boost consumption and technology investments, while the finance ministry unveiled programmes offering financial support to individuals and small businesses, following mixed economic data for 2025 released the day... https://www.scmp.com/economy/china-economy/article/3340573/china-targets-hi-tech-industries-domestic-demand-2026-new-policy-package?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3340573/china-targets-hi-tech-industries-domestic-demand-2026-new-policy-package?utm_source=rss_feed Tue, 20 Jan 2026 11:00:42 +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 Mia Nurmamat Mia Nurmamat China’s efforts to rein in cutthroat price wars in the solar industry have had the unintended result of creating risks of alleged price rigging, highlighting what analysts describe as an “uneasy balance” between the government’s anti-involution campaign and anti-monopoly policies. The photovoltaic industry has been among the hardest hit by vicious price wars – known as involution, or neijuan-style competition – that have affected several sectors in China in recent years, squeezing companies’... https://www.scmp.com/economy/china-economy/article/3339572/chinas-solar-firms-once-deemed-too-competitive-now-face-monopoly-accusations?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3339572/chinas-solar-firms-once-deemed-too-competitive-now-face-monopoly-accusations?utm_source=rss_feed Mon, 12 Jan 2026 08:00:10 +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 Sylvia Ma,Alice Li Sylvia Ma,Alice Li China’s economy has successfully weathered mounting shocks, including US tariffs and technology curbs, and continues to innovate despite a challenging environment, according to the mouthpiece of the ruling Communist Party. “Practice has fully demonstrated that China’s economic fundamentals are solid and its resilience strong, and that it is fully capable of withstanding rough waters and even stormy waves,” the People’s Daily said in an editorial on Thursday, published at the start of the first... https://www.scmp.com/economy/china-economy/article/3339170/china-says-us-trade-war-tech-curbs-have-spurred-independent-innovation?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3339170/china-says-us-trade-war-tech-curbs-have-spurred-independent-innovation?utm_source=rss_feed Thu, 08 Jan 2026 08:08:27 +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 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 Carol Yang Carol Yang China’s economy is projected to grow by 5 per cent in 2025 before slowing to 4.5 per cent in 2026, the International Monetary Fund said on Wednesday, offering a slightly more upbeat outlook underscoring its view of the country’s resilience despite persistent trade frictions. The annual assessment released on Wednesday showed an upwards revision of 0.2 and 0.3 percentage points from the IMF’s October forecast, as the world’s second-largest economy rolled out stimulus measures and faced... https://www.scmp.com/economy/china-economy/article/3335880/chinas-2025-growth-forecast-raised-5-imf-citing-resilience?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3335880/chinas-2025-growth-forecast-raised-5-imf-citing-resilience?utm_source=rss_feed Wed, 10 Dec 2025 07:32:46 +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 Zhu Tian Zhu Tian China’s most effective tool to revive consumption may be the simplest: a one-off distribution of 3,000 yuan (US$424) per person – funded by special sovereign bonds and valid for one year – could immediately lift demand, boost gross domestic product growth and help break the deflationary cycle that has taken hold since 2022. This proposal comes as China prepares to announce its 15th five-year plan, with policymakers expected to target around 5 per cent growth amid a sluggish post-pandemic... https://www.scmp.com/opinion/china-opinion/article/3334577/how-china-could-solve-its-consumption-conundrum?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3334577/how-china-could-solve-its-consumption-conundrum?utm_source=rss_feed Mon, 01 Dec 2025 12:30:08 +0000 Daniel Ren Daniel Ren China’s down jacket and coat makers are the unlikely beneficiaries of the winter season, as more young consumers splash out on coveted brands despite significant price increases. Buoyed by strong buying interest in mid to high-end winter wear, retailers like Bosideng expect the sales boom to continue over the next three months as the weather gets colder. “Garment makers that offer clothes specific for winter have received a windfall from the cold temperatures this year,” Shanghai-based... https://www.scmp.com/business/china-business/article/3333880/rising-down-jacket-sales-offer-unexpected-cushion-against-deflation-mainland-china?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3333880/rising-down-jacket-sales-offer-unexpected-cushion-against-deflation-mainland-china?utm_source=rss_feed Mon, 24 Nov 2025 02:39:15 +0000 Alice Li Alice Li China’s solar industry association has pledged to “fight to the end” to curb cutthroat competition driven by oversupply, vowing to restore fair market order through industry self-discipline. “Don’t underestimate the determination behind the policy,” Liu Yiyang, executive secretary general of the China Photovoltaic Industry Association (CPIA), said in a post on his private WeChat Moments social media feed, according to a report by Jiemian News, a business news website based in Shanghai. “We will... https://www.scmp.com/economy/china-economy/article/3332587/chinas-solar-industry-vows-fight-end-against-cutthroat-competition?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3332587/chinas-solar-industry-vows-fight-end-against-cutthroat-competition?utm_source=rss_feed Thu, 13 Nov 2025 07:00:13 +0000 Xinyi Wu,Kandy Wong Xinyi Wu,Kandy Wong China’s consumer prices returned to growth in October – though the near-zero figure still pointed to persistent deflationary pressures amid weak domestic demand and trade uncertainties – while factory-gate prices continued to fall. The national consumer price index (CPI), a key gauge of inflation, rose 0.2 per cent year on year last month, according to data released by the National Bureau of Statistics on Sunday. The reading beat market expectations after a poll by financial provider Wind... https://www.scmp.com/economy/china-economy/article/3332087/chinas-consumer-prices-return-growth-deflationary-pressures-persist?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3332087/chinas-consumer-prices-return-growth-deflationary-pressures-persist?utm_source=rss_feed Sun, 09 Nov 2025 04:39:25 +0000 Xiaofei Xu Xiaofei Xu French luxury giant LVMH has expressed full confidence in the Chinese market despite sluggish consumption in the world’s second-largest economy, promising continued investment in what it calls “the beating heart of global luxury”. “The future of luxury is being shaped here, in China, with China and with our Chinese clients,” said Marc-Antoine Jamet, LVMH’s secretary general, in Paris before heading to the annual China International Import Expo (CIIE) in Shanghai. China is a top market for the... https://www.scmp.com/economy/china-economy/article/3331464/china-still-beating-heart-global-luxury-french-giant-lvmh-signals-faith-market?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3331464/china-still-beating-heart-global-luxury-french-giant-lvmh-signals-faith-market?utm_source=rss_feed Tue, 04 Nov 2025 09:00:10 +0000 He Huifeng He Huifeng Students, white-collar workers and families filled the tables during a recent dinner rush at a branch of Saizeriya – a Japanese-owned chain of Italian restaurants – in the southern Chinese city of Guangzhou. In the same shopping district, a queue stretched outside a Sushiro conveyor belt sushi restaurant at 8pm. “We waited two hours for a seat, but it was worth it,” said one diner. Such scenes present a contrast to China’s generally sluggish catering market, with analysts saying that budget... https://www.scmp.com/economy/china-economy/article/3331087/japans-budget-restaurants-survivors-lost-decades-find-fans-china?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3331087/japans-budget-restaurants-survivors-lost-decades-find-fans-china?utm_source=rss_feed Mon, 03 Nov 2025 02:00:17 +0000 Alice Li Alice Li China’s supply chain upgrades have strengthened its hand in negotiations with the United States and are expected to bolster its competitive edge over the next five years – though the country must prioritise domestic demand to sustain innovation and avoid worsening deflation, according to an influential economist. “China is probably the only country that is negotiating in a tough way, almost on an equal foot[ing] versus [the] US,” said Robin Xing, chief China economist at Morgan Stanley, in an... https://www.scmp.com/economy/china-economy/article/3331080/chinas-tough-trade-war-stance-rests-industry-demand-still-vital-morgan-stanley?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3331080/chinas-tough-trade-war-stance-rests-industry-demand-still-vital-morgan-stanley?utm_source=rss_feed Fri, 31 Oct 2025 11:00:09 +0000 Luna Sun Luna Sun Creating a new diamond used to be a process spanning millions or even billions of years. Now, it takes about a week. Inside specialised factories, hulking 50-tonne machines simulate the crushing pressure and extreme temperatures inside the Earth’s crust, transforming seed crystals into flawless, glittering stones in just a few days. Zhongjing Diamond, a company based in China’s central province of Hubei, has nearly 300 of the machines humming around the clock, which together mint some 600,000... https://www.scmp.com/economy/china-economy/article/3330244/china-churns-out-artificial-gems-diamond-still-forever?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3330244/china-churns-out-artificial-gems-diamond-still-forever?utm_source=rss_feed Sat, 25 Oct 2025 22:00:14 +0000 Anthony W.D. Anastasi Anthony W.D. Anastasi As I discovered recently, a person’s first trip to Tokyo can be an interesting experience. Its high standard of living, clean streets, orderly public life and inexpensive, dependable infrastructure are likely to impress a first-time visitor. However, puzzling as it might be, Japan’s GDP has not grown much since the 1990s despite clear evidence of a thriving economy. In US dollar terms, Japan’s GDP was higher in 1993 than it was in 2024. There are a few reasons for this disconnect. Some of it has... https://www.scmp.com/opinion/china-opinion/article/3329873/why-china-should-stop-worrying-and-embrace-japanification?utm_source=rss_feed https://www.scmp.com/opinion/china-opinion/article/3329873/why-china-should-stop-worrying-and-embrace-japanification?utm_source=rss_feed Wed, 22 Oct 2025 08:30:08 +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 He Huifeng He Huifeng China has announced production curbs in its strategic non-ferrous metals sector, the latest step in Beijing’s drive to rein in cutthroat competition and boost industrial efficiency. In a new action plan the Ministry of Industry and Information Technology (MIIT) has projected output growth of 1.5 per cent for primary non-ferrous metals this year, down from 4.3 per cent last year. The initiative expands Beijing’s campaign against “involution”, or neijuan in Chinese – a self-defeating cycle of... https://www.scmp.com/economy/china-economy/article/3327253/china-curbs-strategic-non-ferrous-metals-sector-fight-against-cutthroat-competition?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3327253/china-curbs-strategic-non-ferrous-metals-sector-fight-against-cutthroat-competition?utm_source=rss_feed Mon, 29 Sep 2025 23:00:08 +0000 He Huifeng He Huifeng China has rolled out a new steel industry action plan that includes a basket of measures to deal with the chronic oversupply problems plaguing the sector, as Beijing steps up efforts to end a string of price wars raging across the economy. The plan, which includes a strict ban on additional capacity and moves to accelerate the phase-out of outdated equipment, could become a blueprint for other industries suffering from overproduction and excessive competition, analysts said. Released by the... https://www.scmp.com/economy/china-economy/article/3326389/china-steps-fight-against-vicious-price-wars-new-steel-industry-plan?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3326389/china-steps-fight-against-vicious-price-wars-new-steel-industry-plan?utm_source=rss_feed Mon, 22 Sep 2025 10:00:52 +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 Alice Li Alice Li President Xi Jinping has called for more efforts to develop a unified domestic market, arguing that it will be crucial to helping China secure an edge in international competition and meet its development goals. In an article published on Monday in Qiushi, the ruling Communist Party’s leading theoretical journal, the Chinese leader listed six key tasks, with measures to deal with excessive cutthroat competition at the forefront. Vicious price wars have broken out in several industries in recent... https://www.scmp.com/economy/china-economy/article/3325680/chinas-xi-calls-building-unified-market-secure-edge-global-race?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3325680/chinas-xi-calls-building-unified-market-secure-edge-global-race?utm_source=rss_feed Tue, 16 Sep 2025 04:30:10 +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 Raymond Ma Raymond Ma A public consultation on updates to China’s pricing law ends on Saturday as officials seek to curb excessive competition, or neijuan (内卷), which is hitting corporate profits and adding to deflationary pressures. The amendments, involving 10 clauses, will be the first since the law was enacted 27 years ago. They have been drafted by the National Development and Reform Commission, and the State Administration for Market Regulation. Cutthroat price competition has affected several industries in... https://www.scmp.com/plus/article/3322808/pricing-law-reforms-wang-yi-south-asia-motor-show?utm_source=rss_feed https://www.scmp.com/plus/article/3322808/pricing-law-reforms-wang-yi-south-asia-motor-show?utm_source=rss_feed Fri, 22 Aug 2025 09:01:19 +0000 Mandy Zuo Mandy Zuo It has been a tumultuous couple of months for Alex Xu’s company – a solar panel manufacturer based in eastern China’s Zhejiang province – as product prices have surged by about 20 per cent. Long plagued by severe oversupply, China’s photovoltaic industry is grappling with cutthroat price wars and even loss-making sales. From Xu’s perspective, nearly half of the industry’s capacity is excessive. But a rebound in prices has followed recent calls from Chinese authorities to combat “involution”, or... https://www.scmp.com/economy/china-economy/article/3322605/chinas-crippling-price-wars-old-laws-revision-seeks-sustainable-equilibrium?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3322605/chinas-crippling-price-wars-old-laws-revision-seeks-sustainable-equilibrium?utm_source=rss_feed Thu, 21 Aug 2025 22:00:12 +0000 Ji Siqi Ji Siqi Beijing has signalled stronger action against price wars, convening a high-level symposium of enterprises and regulators – including many left out of previous meetings – to tackle cutthroat competition in the solar sector. Authorities vowed to tighten oversight of new project investments, phasing out outdated capacity through market-based and rule-of-law approaches, according to the Ministry of Industry and Information Technology (MIIT), one of the meeting’s hosts. “Efforts will focus on... https://www.scmp.com/economy/china-economy/article/3322512/china-expands-regulatory-arsenal-fight-against-solar-industry-price-wars?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3322512/china-expands-regulatory-arsenal-fight-against-solar-industry-price-wars?utm_source=rss_feed Wed, 20 Aug 2025 09:30:09 +0000 Carol Yang Carol Yang A high-level Chinese official has called for easing property and other market restrictions to boost spending among the wealthy, as Beijing steps up efforts to stimulate consumption amid deflationary pressures. “Let the rich spend. This is the most direct [approach],” said Yin Yanlin, who was deputy director at the Office of the Central Financial and Economic Affairs Commission, a party organ overseeing economic policy, from 2018 to 2023. Yin, now a senior economic adviser in the Chinese People’s... https://www.scmp.com/economy/china-economy/article/3322014/china-told-remove-purchase-restrictions-set-mandatory-targets-spur-consumption?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3322014/china-told-remove-purchase-restrictions-set-mandatory-targets-spur-consumption?utm_source=rss_feed Fri, 15 Aug 2025 11:30:07 +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 Sylvia Ma Sylvia Ma As China rolls out subsidies for personal consumer loans, covering part of the interest costs, Beijing’s latest effort to spur spending is likely to be tested by a deeply ingrained public attitude: saving. For many Chinese households, including Mary Lin, a 54-year-old primary school teacher, borrowing to spend remains unimaginable. “Except for a mortgage, I’ve never taken out a bank loan in my life,” she said. “Taking out a bank loan to spend isn’t popular for people of our generation, unless... https://www.scmp.com/economy/china-economy/article/3321850/why-debt-shy-chinese-consumers-may-snub-loan-subsidy-scheme?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3321850/why-debt-shy-chinese-consumers-may-snub-loan-subsidy-scheme?utm_source=rss_feed Thu, 14 Aug 2025 08:16:33 +0000 Sylvia Ma Sylvia Ma Beijing has unveiled a year-long plan to subsidise interest on personal consumer loans to spur spending, but analysts say that while it has symbolic importance, its impact might be modest given the small share of total consumption funded by borrowing. Individuals who take out consumer loans for purchases – including single transactions below 50,000 yuan (US$6,958) and higher amounts for purchases in key sectors such as cars and education – will have part of their interest costs covered by the... https://www.scmp.com/economy/china-economy/article/3321647/china-seeks-bolster-demand-subsidising-interest-costs-consumer-loans?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3321647/china-seeks-bolster-demand-subsidising-interest-costs-consumer-loans?utm_source=rss_feed Wed, 13 Aug 2025 01:33:02 +0000 Alice Li Alice Li With e-commerce platforms locked in fierce competition for China’s instant retail market, a prominent Chinese economist has called for government guidance that balances regulatory oversight with innovation and a push for new growth drivers. Wang Yiming, a central bank adviser, said “quick commerce” – involving the rapid delivery of food and essential goods, often within 30 minutes – creates new opportunities for consumption, which could be vital for long-term growth. He urged officials to guide... https://www.scmp.com/economy/china-economy/article/3321478/china-urged-curb-excessive-cash-burn-not-competition-fight-neijuan?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3321478/china-urged-curb-excessive-cash-burn-not-competition-fight-neijuan?utm_source=rss_feed Tue, 12 Aug 2025 02:00:09 +0000