China’s Deflation: How the World’s Second-Largest Economy Is Responding to Downturn?

China on Wednesday reported it had entered deflation for the first time since 2021 — the latest indicator pointing to a slowdown in the world's second-largest economy. Here's how Beijing is attempting to reverse the downturn: – Targeted stimulus – During the global financial crisis of the late 2000s, China unveiled a massive four trillion yuan ($556 billion at current exchange rates) stimulus plan. The plan sparked an infrastructure boom of roads, airports and high-speed train lines — but also brought the risk of unnecessary projects and growing debt. These days, keen to clean up its finances, Beijing now prefers…