CNBC's The China Connection newsletter: Beijing has more to worry about than just deflation
Publishing timestamp: 2025-07-23 07:54:31
Summary
Persistent drop in prices in China signals the need for serious changes as the country prepares its national development blueprint for the next five years. Economists emphasize the importance of growing productivity and institutional reform. Chinese President Xi Jinping calls for improving the evaluation of government officials' performance. Policymakers are expected to focus on consumption, reduce income gaps, and prioritize high-quality development. China is managing overcapacity in key sectors and addressing economic challenges. U.S.-China trade truce likely to be extended. Economic uncertainty persists in China. Mainland China and Hong Kong stocks rise amid broader regional gains. European Commission President to meet with Chinese President, and U.S. Treasury Secretary to meet Chinese counterparts next week. Politburo meeting expected by the end of the month.
Sentiment: MIXED
Keywords: china, united states, india, economic events, goldman sachs group inc, business news, world economy, hang seng index,