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China is exporting deflation by running the factories on full blast, despite low local demand, and then selling abroad with rapidly shrinking margins.

This is not intentional; they're just trying to not go bankrupt.

nami 1y ago

I don't think so. There are hundreds of millions of chinese people out of poverty the late years and china is producing much because they were reinvesting much of their profits to production. The europeans have a problem with that because they created a mess in their territory. The west in general i would say...

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Discussion

Laeserin 1y ago

They're producing too much because factories are designed to run at high-capacity. You can't just turn them off and on again.

They have to keep producing, but they need to put the goods someplace, or they have to pay for destroying them and eat the entire loss.

nami 1y ago

That too yes