ANBOUND: Deflation Will Make Reform of the Supply Front Harder
ANBOUND
The Chinese economy in early 2016 has continued the downward trend from 2015.
Some of the market analysts believe that this year China's economy will face the risk of deflation.
ANBOUND’s research team is of view that China’s economy is already in a state of deflation and the real question to be asked is whether it is a deep deflation.
Should the deflation worsen, it will make the reform of the supply front harder.
The true solution is still to promote various market-oriented reform and to replace the government-led stimulating measures with market-led economic activities.