China's Persistent Deflation: Challenges and Implications

China's persistent deflation, lasting for three consecutive quarters, poses challenges for policymakers and raises concerns about a debt crisis. Negative implications for the global economy include lower consumer spending, depressed economic activity, and potential financial system risks. The Chinese government's options to stimulate demand and address the property market are discussed, with calls for more aggressive policies. Economists expect the deflationary streak to continue in the first half of 2024. The overall implications for foreign investors are also highlighted.