China's deflation problem won't go away by itself

Beijing seems instead to be prioritizing yuan stability

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20240214 pan gongsheng

PBOC Gov. Pan Gongsheng in Morocco in October 2023: The China deflation narrative would be getting less oxygen if the central bank were perceived to be doing its job. © Reuters

William Pesek is an award-winning Tokyo-based journalist and author of "Japanization: What the World Can Learn from Japan's Lost Decades."

Many observers predicted China's deflationary bout would not last long. But much as "Team Transitory" got it wrong about inflation in the U.S., falling prices are proving stickier than expected in China.

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