Deflated dreams: China bets on technology to avoid economic slowdown

Analysts are already beginning to discuss the possible "Japanification" of China, referencing the long, deflationary stagnation that plagued Japanese economy after its boom years ended in early 1990s

The weeklong National People’s Congress of the Chinese Communist Party this year was — as it usually is — a celebration of President Xi Jinping’s leadership. The optimism on display might sit somewhat awkwardly with the rest of the economic news out of China, however. Deflationary pressure has become difficult to ignore, with prices falling for consumers over the first months of the year, signifying that demand is still weak and overcapacity a problem. This follows two years in which broad measures of prices appear to have slipped into deflationary territory. Questions about the excess capacity in the economy will