China is entering deflation — and the consequences for the global economy are catastrophic. China's Producer Price Index has been negative for 40 consecutive months. Full-year CPI hit just 0.2% in 2025 against a 2% government target. The IMF ranked China second-lowest inflation economy among nearly 200 nations. Goldman Sachs projected retail inflation at zero. One in five Chinese industrial firms is losing money. Real estate wealth has collapsed by 85% since 2021. And now deflation is being exported through trade routes directly into global markets. This is not a regional problem. This is a systemic global economic crisis unfolding in real time. In this video, we break down exactly why China's deflation spiral is terrifying, how it mirrors Japan's Lost Decades, and what it means for American workers, businesses, and consumers. Stay until the end — the global impact will shock you.
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