China to Flirt With Deflation in 2019, Economists Say

The video discusses China's economic outlook, focusing on the Producer Price Index (PPI) and the challenges posed by potential deflation. It highlights the impact on the corporate sector, including increased debt servicing costs. The consumer price trends indicate disinflation, aligning with global economic slowdowns. The government is under pressure to stimulate demand, though no immediate interest rate cuts are planned. The overall narrative suggests a need for strategic measures to achieve economic recovery.

What challenges does the corporate sector face due to higher real costs of debt?

What is the government's inflation goal, and how does it compare to economists' expectations?