China’s Economy: Struggling with excess supply and reduced demand, China faces imbalance. As the disparity grows, its global repercussions mount. However, India benefits from shifts in the global supply chain.

China’s economy slipped into deflation last October, raising concerns of escalating imbalances that could impact the global economy. Deflation is the opposite of inflation, indicating a decrease in the prices of goods. It suggests either reduced demand or excessive supply in the economy. China is grappling with excess supply.