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submitted 1 year ago by MicroWave@lemmy.world to c/world@lemmy.world

China’s real estate market is in decline. Debt deflation hangs in the air. The country’s workforce is shrinking and GDP growth is trending downwards.

No wonder the International Monetary Fund at its recent shindig in Marrakech warned of slowing economic growth in the People’s Republic, raising the prospect of “Japanisation” – the prolonged economic and financial malaise that afflicted its once high-flying neighbour after an asset bubble imploded three decades ago.

The trouble is that China’s economic imbalances are far worse than Japan’s in 1990. And that’s before considering the ruinous economic consequences of President Xi Jinping’s autocratic rule.

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[-] Laser@feddit.de 26 points 1 year ago* (last edited 1 year ago)

This old trope

In fact tech has always been a very deflationary sector (as in the longer you wait, the more you get for your money) yet it's pretty profitable. Nobody would ever get a phone by that logic

You only get more if you wait and buy that spec. Latest spec is always more and subject to inflationary shocks like covid supply chain disruption with semis.

[-] Krauerking@lemy.lol 5 points 1 year ago

Which is probably why they are terrified that the newer specs are not growing at the rates that make it required to get.

If you can't sell them on the newest chip at 4% faster then it starts to just roll back into deflationary and you need more people to buy it, like buly pushing an AI boom.

this post was submitted on 22 Oct 2023
136 points (94.2% liked)

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