The at least $17.7 trillion Chinese economy has been facing a slowdown recently, which is hard to miss due to China’s global trade and investment connections. China slipped into deflation for the first time in more than two years, official data showed on 9 August. The IMF expects China’s economy to expand 5.2 per cent this year after a 3.0 per cent increase in 2022; quarter-on-quarter growth from Q1 to Q2 in 2023 was merely 0.8 per cent. A set of political and market factors structurally prompts the current deflationary trend in the country. Aspects of the recent slowdown Political…