> China's gazillion factories are deflationary

They are also deflationary in China. They're currently getting crushed under their own debt load because of deflation. They are also part of the Eurodollar system, so they can't escape the negative effects of deflation.

The only large economy that didn't have excessive debt was Germany, which is why the government just took on the biggest debt package, ever, even though they don't really have anything to spend the money on. It's trying to rebalance (read: devalue) the purchasing power of the euro, to protect exports.

https://www.bloomberg.com/graphics/2025-china-deflation-cost/