IndiaTheNews Exclusive: Deflation steps in China, huge economic tsunami is coming, dragon may yearn for pie-pie

This week in IndiaTheNews News Network’s special program Shaurya Path, we wanted to know from Brigadier Shri DS Tripathi (Retd) that there are reports that China is going to face a big economic crisis as it is facing Deflation for the first time. We also wanted to know what is this deflation and how can it affect China’s future plans? In response to this, he said that China is currently facing an economic crisis, which is a sign of rapid growth. He said that certainly the picture of China’s economy which is visible at this time can push its expansionist agenda.

Brigadier Shri DS Tripathi (Retd) said that as there is inflation, there is deflation. He said that every country keeps a fixed rate of inflation that it should not be allowed to increase beyond that so that inflation remains under control. Actually if there is no inflation at all then how will the economy of that country run? He said that deflation means that people may have money but they are not buying the products, people are not buying the products so their prices are decreasing, factories are reducing their production and reducing employment opportunities. . He said that if this situation persists for a long time, then the economy of even the biggest country gets affected.

Brig Shri DS Tripathi (retd) said China’s factory-gate prices declined in July as the world’s second-largest economy struggled to spur market demand and Beijing continued to push for more direct policy. The pressure to do is mounting. He said there is growing concern that China is entering an era of very slow economic growth like Japan. He said the recovery in China’s economy has slowed after a sharp start in the first quarter after the pandemic as demand weakened at home and abroad and several policies to support the economy failed to spur activity.

Brig Shri DS Tripathi Ji (Retd) said that China’s Consumer Price Index (CPI) fell 0.3% year-on-year in July. He said that the Producer Price Index (PPI) also declined for the 10th month in a row, falling by 4.4% and this is more than the forecasted decline of 4.1%. He said China was the first G20 economy to report a year-over-year decline in consumer prices, and the weakness raised concerns about the impact on trade among China’s major trading partners. He said that both China’s exports and imports have seen a decline in July. He said that China’s real estate sector and banking sector are also facing challenges. He said that despite low interest rates, worried consumers and companies are hoarding cash instead of spending or investing the money. He said that apart from this, concern is also being seen among Chinese industrialists due to the treatment done by China with the owner of Ali Baba company. He said that due to China’s suspicious attitude, many countries are not taking its investment, foreign investment in China has almost stopped and many big companies have left China. He said that cheap labor and better technology like China is now available in many Asian countries, so people are leaving China, which is going to be a loss for China.