"China's Deflation Woes: Impact on Economy and Global Markets"

China's economy is grappling with worsening deflation as new data shows consumer prices dropped at their sharpest rate in 14 years, attributed to the turmoil in the property market crushing consumer spending and confidence. The ongoing deflation points to weak consumer demand and confidence, with potential spillover effects for the global economy, and could spell trouble for earnings of Chinese companies. Policymakers are urged to provide clarity on potential stimulus measures to avoid a "debt-deflation spiral" and further weakening of domestic demand.