Story perspectives

China's Retail Inflation Hits 0% Amid U.S. Tariff Crisis

5/5/2025

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Summary

Story summary

China is shifting exporters to the domestic market due to high U.S. tariffs, risking deeper deflation.
Goldman Sachs forecasts China's retail inflation will drop to 0% by 2025, with wholesale prices down 1.6%.
E-commerce platforms like JD.com are selling goods intended for the U.S., sparking price wars and lower profits.
The end of tariff exemptions threatens small exporters with insolvency, potentially raising urban unemployment above 5.7%.
Economists caution that the property slump and U.S. tariffs are hindering recovery efforts.

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Story summary

China is shifting exporters to the domestic market due to high U.S. tariffs, risking deeper deflation.
Goldman Sachs forecasts China's retail inflation will drop to 0% by 2025, with wholesale prices down 1.6%.
E-commerce platforms like JD.com are selling goods intended for the U.S., sparking price wars and lower profits.
The end of tariff exemptions threatens small exporters with insolvency, potentially raising urban unemployment above 5.7%.
Economists caution that the property slump and U.S. tariffs are hindering recovery efforts.