Back 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.

Link: https://www.cnbc.com/2025/06/06/world-could-be-facing-another-china-shock-but-theres-a-silver-lining.html