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Economic problems bring threat of deflation

Real estate development has slowed as inventories have piled up.

BEIJING -- Excess manufacturing capacity, rising real estate inventories and volatile financial markets weigh on China's economy as the government tries to engineer a soft landing, with data for 2015 suggesting that deflation may loom.

     China's real gross domestic product growth slipped to 6.9% last year, the lowest in a quarter century. Real growth had not dropped below 7% since 1990, when international sanctions were imposed in response to the 1989 Tiananmen Square crackdown.

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