China's Deflation Wave Could Ripple Across the Globe

China’s rising deflationary pressures spell disaster, threatening to drag the nation and potentially the global economy into a devastating slump. Plummeting prices erode corporate profits, suppress consumer spending, and risk increasing unemployment rates. As Frederic Neumann, chief Asia economist at HSBC in Hong Kong, warns, “The market is underestimating the deflationary impact on the global economy.”