Michael Pettis: Pimco views China as a global disinflationary force due to manufacturing priorities

Michael Pettis: Pimco views China as a global disinflationary force due to manufacturing priorities
Pimco sees China driving disinflation

Michael Pettis, economist, professor of finance, nonresident senior fellow, author, macroeconomic analyst at Peking University; Carnegie Endowment for International Peace, highlights that according to Bloomberg, Pimco sees China's role as a source of global disinflation as structural. Pimco expects China to continue emphasizing manufacturing and technology, which allows the country to grow production capacity faster than domestic demand and exert downward pressure on prices worldwide.

Pettis has previously noted a widespread consensus among economic policy advisors on China’s need to rebalance its economy. He has also highlighted investor concerns about hidden bad debt following the Huaxia Bank case in China’s banking sector. Ongoing debate continues about structural pressures facing Chinese growth.

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