Recent developments in China's economy are affecting the dynamics of global competition.

Despite various measures taken by the Chinese government to support the economy, deflation and weak household consumption continue to hinder growth. This situation contradicts the goals set by the Central Committee of the Chinese Communist Party (CCP) within the framework of the 15th Five-Year Plan.

The 15th Five-Year Plan for 2026-2030 aims to enhance scientific and technological capabilities. However, it is evident that household consumption is not meeting these targets.

As Asia Markets Analyst Sadi Kaymaz points out, the excess supply in China is one of the biggest problems for the global economy. This situation leads to an increase in household savings and a weakening of domestic consumption.

It is emphasized that structural reforms are necessary to solve the deflation problem in China. The inadequacy of the health insurance system and the aging population increase the need for these reforms.

The high unemployment rate among the younger generation poses a significant barrier for savers. The decline in housing prices creates the biggest obstacle for wealth holders.

Whether China can escape the deflation spiral will depend on the steps it takes in areas such as demographics and social security.