Xi Signals China May Finally Tackle Deflationary Price Wars (1)

After years of mounting concern over deflation and the bruising price wars that have plagued much of China’s economy, President Xi Jinping’s government is showing signs of finally taking action.

Beijing’s messaging has noticeably shifted in recent weeks, with Xi and other top officials offering their bluntest assessment yet of the cutthroat competition that’s been dragging down prices and profits across industries, from steel and solar panels to electric vehicles. This pivot comes after nearly three years of factory-gate deflation and growing pressure from US tariffs and trade tensions.

Finding a solution would be welcome news for much of ...