<ul><li>China's consumer price index (CPI) fell 0.1% in March, marking the second consecutive month of deflation.</li><li>Producer prices also continue to fall, dropping 2.5% year on year in March, indicating challenges for Chinese exporters.</li><li>The escalating trade war with the US and a shrinking global demand for Chinese goods contribute to deflationary pressures in China.</li><li>To counter the economic slowdown, Chinese policymakers are focusing on boosting domestic consumption by introducing stimulus measures.</li></ul>

China Faces Deflationary Pressures as Trade War Escalates

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