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Posted on 07/11/2025 10:15:05 PM PDT by SeekAndFind
According to figures released on July 9 by China’s National Bureau of Statistics, the producer price index for industrial products in June fell by 3.6 percent compared with the same month in 2024—worse than a 3.3 percent drop in May, and the biggest annual decline since July 2023.
The month’s purchasing price index for industrial products fell by 4.3 percent year over year, bigger than the 3.6 percent drop in May, and the sharpest decline since August 2023.
According to Dong Lijuan, statistician at the National Bureau of Statistics, the producer price index deflation in June was driven by cheaper energy prices, uncertainties in international trade, and hot and wet weather that drove down the price of building materials.
Sectors that rely on exports faced more downward pressure in prices, she said.
“The prices of computers, communication equipment, and other electronic equipment in June dropped by 0.4 percent [compared to May], the prices of electrical machinery and equipment fell by 0.2 percent, and textile prices fell by 0.2 percent,” she said.
In annual terms, the prices of computers, communication equipment, and other electronic equipment fell by 2.3 percent.
China’s factory activity shrank for a third month in a row in June, albeit at a slower pace, with employment and new export orders still languishing.
“We expect demand to weaken later this year, as exports slow and the boost from fiscal support diminishes,” Zichun Huang, China economist at Capital Economics, said.
Market reaction to the data was cautious amid uncertainties in the trade war between the United States and other economies. China’s Shanghai Composite Index was up by 0.3 percent by the midday break, while Hong Kong’s benchmark Hang Seng Index traded down by 0.7 percent.
As subdued domestic demand remains a drag on China’s economy, companies have resorted to price discounts to boost sales, prompting the authorities to urge an end to the auto industry’s bruising price wars.
Highlighting the tepid consumer market, Chinese e-commerce giants Alibaba and JD.com have pledged heavy subsidies over recent months to expand aggressively into fast deliveries.
Consumer prices rose by 0.1 percent compared with the same month in 2024, following four months of deflation.
“Consumer inflation is likely to remain near zero for the rest of the year, as structural adjustment continues slowly, with consumer demand weighed by the protracted property downturn and worries over the jobs market,” Duncan Wrigley, chief China economist at Pantheon Macroeconomics, said.
He also said that trade tensions between Washington and Beijing are likely to continue despite the recent framework agreement.
“More flare-ups are likely and cooling export growth will add to downward price pressure in manufactured goods sectors,” he said.
According to supply chain technology provider Descartes, U.S. container imports from China were about 639,300 20-foot equivalent units in June, slightly up (0.4 percent) from May, but a 28.3 percent decline from June 2024.
The company said it expects that “China’s share of U.S. imports may remain under pressure through the second half of 2025,” with the upcoming expirations of U.S. tariff pauses extended to Aug. 1 and the trade truce with China on Aug. 12, and with additional U.S. tariffs on transshipped goods via Vietnam.
Reuters contributed to this report.
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Five years overdue!
Where’s the animated GIF of the boo-hoo girl?
Found her!
This is not a boohoo moment.
Deflation is only a negative if you have enormous quantities of debt. China does not. Deflation just means their consumers pay less for stuff.
Whatever China reports, it’s worse in reality.
The boo-hoo is /s
China is at least five years overdue for unleashing their Coup-Flu.
Shedding only croc tears for the Chi-commies.
The Yellow Peril! a horde consisting of depraved, uncivilized heathens who are less than human and threaten to undermine the American way of life.
Yes Miss Landers!
They just busted a 3rd CCP honeypot....and more to come.
Possibly sending info of county commissioners, ect.
Correct. China is gonna collapse. This is going to be Trump’s trophy, like Reagan breaking the Soviets.
Trump knows how to break them. Their economic numbers are all smoke and mirrors. They were never more than a $9 trillion dollar economy.
March 2025
China’s debt has surpassed 300% of GDP, with further increases expected, while the central bank plans to continue easing monetary policy when necessary, according to Xuan Changneng, deputy governor of the People’s Bank of China.
300%? Our debt to GDP now stands at 124%.
Uncertainty in market.
Thank you Trump.
All part if the negotiation offer. All they had to do was stop being so greedy, but they decided to play hardball longer. Uncertainty, inflation is the result. Moron Trump not so moron!
You are insane.
Make China like 1959 again.
The IMF evaluates China debt levels at 80% GDP and the credit rating agencies quote 68%.
This sort of thing has happened with American debt, too. The way these variances happen is, of course, definitions.
There is national debt, there is central (federal) government debt, there is “total” debt. National debt is the sum of all govts (central govt, province (or state), and local agency) debt.
Government debt, for China, sums the central government plus province and local. The US avoids quoting that because it magnifies the disaster of 37 (31) Trillion, since more will be added to that number. So only the federal govt debt is quoted for the US. For China, they expand it more. IMF and the 3 major raters do, too.
And then there is mortgage debt, credit card debt and auto loans and whatever else at the individual level. Point being, you can make things sound how you want by adjusting definitions.
It is pretty easy to manufacture and believe one’s own propaganda. The rating agencies generally try to see through that and you will not see any of them quoting Chinese debt at 300% GDP.
Indeed. And, they have many indebted, uninhabited residential high rises rotting away. So are most of the “projects” here but the debt on those is most likely retired.
Yep like he said they need us more than we need them
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