- China continues to wrestle with chronically low domestic aggregate demand growth, thanks to the cratering consumer confidence amidst the still-going property sector crisis.
- The Chinese government’s more surgical approach to addressing the property sector crisis does not appear to be highly effective at present, given conflicting objectives in some of its numerous piecemeal interventions.
- The absence of significant improvements in the property sector condition and domestic aggregate demand growth means that China is likely to persist in exporting deflation to the global economy.
