The Chinese economy has been freed from the dampening effects of the stringent zero-COVID policy, but it is displaying a troubling lack of resilience. Some are even discussing the possibility of deflation caused by insufficient demand, raising concerns about downward pressure on the slowing global economy.
At the beginning of the year, many expected that a revived Chinese economy, newly emerged from the COVID-19 pandemic, would help drive global growth. Such hopes appear to be fading.
