[PEN-L:32557] deflation in China

[Chris Burford <cburford@xxxxxxxxxx>]

A diary contribution from Beijing in the Independent on Sunday (UK) notes
that there are now 190 million mobile phones in China.

This is tremendously important for a developing country in leaping over one
of the steps in technological revolution, the need to lay telephone landlines.

Secondly it describes a number of examples of prices falling locally.

A Google search reveals the English language version of People's Daily,
eager to promote a report by BNP Paribas deflecting mutterings that China
may be responsible for global deflation.

http://english.peopledaily.com.cn/200210/30/eng20021030_105937.shtml

Nevertheless China looks to be in a strategically competitive position in a
deflationary world. Hence the interest of other east Asian countries in
joining up with it in a free trade area.

No wonder the US thought it better bury the humiliation over the dismantled
spy plane and resume courtesy naval visits to Chinese ports recently.

We may hopefully be moving towards a more interesting multi-polar world.

Chris Burford

London