China May Enter Factory Gate Deflation Earlier Than Expected, Says Barclays’s Chang

The video discusses recent inflation data, highlighting that CPI inflation met expectations while PPI inflation fell more than anticipated, potentially entering deflation. This could impact corporate profits and lead to more easing by policymakers. The trade war is causing Chinese factories to lower prices, potentially leading to closures and increased unemployment. A 6.2% GDP forecast for Q2 is discussed, with potential downside risks due to declining PMI and rising deflationary pressures.

What does the decline in export orders in the PMI suggest about the future of factories in China?

What are the potential risks to the GDP forecast based on the recent PMI data?