China’s deflationary slide is worsening as companies spiral into price wars

Key Points

There’s a pattern in China: companies rush into an industry, then resort to discounts to stay afloat.
“On the surface you’re dominating, but deep inside you’re paying a high price to dominate,” an economist said.
The escalation of tariffs has made Chinese manufacturers more determined to build factories overseas, “potentially generating redundant supply in the coming years,” Goldman Sachs said.

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