Beijing’s Deflation Problem: Values ​​falling in large pests forward in the Chinese economy

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Beijing (AP) – when buying a flat near a high school in northeastern Beijing in 2020, Zhou Fujin expected a mortgage. But the number of apartment and rent rented him over the past few years, which is taking money for his family.

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China is responsible for spelling, or prices, compared pressures that rise in the world. The cheap prices can be a blessing to others, but dirt is a sign of a weak need and full economic growth.

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Such challenges are behind in the Chinese-Parliamentary Class, which started on Wednesday. It is not clear what rulership group can be conducted by dealing with the problem, even though some economic activity expects Beijing to declare additional government spending. Deservers will also view changes in the target of annual economy, which has traveled near 5% over the past two years.

These are broad, long-term problems. The prices of houses crossed many prices and left many reluctant families, while factories continue to get out of property.

Economy – Width, prices falling in 2023 and 2024, the longest deflation bout from the 1960s. The Gross Domestic Proded Proded Proded _ rate of economic change – it is in 6.8% three months ago in the past 2024, compared to a quarter before, which means pollution has been strengthened.

Street bags

Deflation is an invisible economic concept but showing the most barking on the limited zhou, as it does to millions of others. Zhou’s apartment, Boijing’s Miyun District, calls a two million Yuan ($ 316).

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In time Zhou purchased his apartment, the government began cracking on the basis of extreme loans by buildings of buildings, compelling the disaster risk management and multifological companies. The father of the two is conducting a real estate company, who has been filled with money for the past four years. Since you expanded from decorative tutor, helping her break.

“He was given the work in the property, income,” Zhou said: “Zhou told the Associated Press. I’ve decided some costs such as walking. Even my children have realized that money is not easy to find, and they are willing to spend less. “

Lu Wasang, owner of the workplace in Beijing in Beijing, says he gets only one or two a day, down from more than twelve before the epidemic. Many now choose to adjust the fractive photography of photos rather than new buy. Few homeowners who want to decorate their apartments.

Lbu family burned their saving and feared that soon he could not afford his 6,000 tax ($ 825).

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“I think to change from other industries, but the problem is I amazed to any of them. And as a fact, what industry is easy to use these days?” He offered them.

‘Deflationary Spirish’ can show a major problem forward

Deflation can be difficult for the government to address the inflation, experts say, because that requires fixing basic issues behind it.

In the case of China, it is a combination of excess property _ Also, disaster and tillion risk is about $ 18 trillion of household resources, according to a housing report, above the loss of functions due to Covil-19 epidemic.

“When the property market rises, people believe that they are very rich,” she Shi, the economic professor in Australia’s Monash University. “If people believe that they are rich, they often spend money. But diminishing housing prices in many parts of China, people believe that they are the best, so they want to increase their money and reduce their use.”

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When the rates fall, the benefit of companies also take a beat. That can stimulate what is called “spoiling” layoffs “reduced household income, which results in very little use and may be a decline in economic or depression. Fitch ratings on November warned that the dirt is focused on China and urges their leaders to use policies that can increase the needs.

At that time, the US President Donald Trump has set up 20% of the new prices to export the expectations that are expected to rise until “the Chinese is sent to Erica, Director of Macro Tay at Maybank Investment Investment Banking Investment Group.

The critical issue of the Communist Party

Deflation is a serious problem of Chinese leaders, who began to cut the amounts of the pillar and require the payment of the collapse. Plans to find local governmentes to buy free apartments as inexpensive and encouraging banks to form more money.

However, senior leaders often focus on their comments in the achievement of the ruling party and avoid rediing directly, the problem shapes without prompt repairs.

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“They try to do everything in their power to avoid ‘deflation’ because they believe that they will make consumers more likely,” Shi. “When they come down too far, they will improve their use so they make the situation worse.”

Some economists, including Michael Pettis, professor of Finance in Guanghua School of Management in Peking University in Peking University, says the economy can be rewritten if the consumers receive purchases. That requires lowering the wealth assignment in accordance with unproductive investment.

The government wants to promote additional spending by issuing discounts, when he sees far from important economic changes.

“Economic renewal should be linked to increased population increase” means the Sun Limjuan, the economic school in Fudan University. “Government has to give credit discounts to buy what they need; this has proven that it is a good way.”

Louis Kuijs, Asia Economic Officer of S & P Global Economies, China needs to face long, chronic problems including industry production and industrial industry. Updating health care, pensions and educational programs will be ‘more comfortable with their financial condition.’

“In a short time, whatever raises the household income will help on the side of use,” said Kuijs, “but perhaps most importantly is the production of a government role … and requires social security.”

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Associated Press Cechcher Yo Bing contributed this matter.

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