Why do you expect China’s deflation to be contagious and spread to the West? Or is there some underlying cause that both share, and it’s just that China is showing the symptoms first?
> the worlds largest manufacturer and exporter. As their prices spiral lower and lower the goods they sell abroad do the same
Eh, the deflation transmission channel for manufactured goods isn’t well established. If China had a floating currency and were a financial power, yes. But I’m sceptical cheaper consumer and intermediate goods will prompt deflation, particularly given the West is still battling inflation.
