The Deflationary Spiral in China

Because of the one-child policy, Chinese don't have much of a generation in that black at all. The last country to face a major deflation burst was Japan. What's happening is product normally produced for export from China is now being locked up within the Chinese system. You have an oversupply of good of goods and an under demand both at home and abroad with all those extra goods,. prices go down and you get deflation.