Industrial pruning won't pull China out of deflation as quickly as last time
- Posted on July 22, 2025
- By Business News Today
- 4 Views

Industrial pruning won't pull China out of deflation as quickly as last time

China is considering industrial capacity cuts to fight deflation. This move echoes reforms from a decade ago. However, challenges like private ownership and local incentives complicate matters. Experts worry about job losses and economic slowdown. Beijing may cautiously target sectors like autos and solar panels. The US and EU have concerns about China's overproduction. Local resistance could hinder progress.