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09 Jun 2025
The world could be facing another ‘China shock,’ but it comes with a silver lining
Summary: China’s overcapacity and production overdrive are leading to a surge in cheap exports, causing concern among Asian economies about potential harm to local industries. However, this influx of low-cost goods brings a silver lining for inflation-worn economies, offering relief to consumers and potentially easing pressure on central banks. While some countries, like Thailand, may face a double-edged sword, others, such as Australia and Indonesia, could benefit from lower costs of living and reduced inflationary pressure.