Hong Kong based economist Chi Lo argues that while China is benefiting from 'benign' deflation on the back of the productivity growth boosting exports, this may be adding to the 'malign' deflation of some of its neighbours, still suffering from the legacy of previous overcapacity.
Recently, the Japanese have been crying foul with regard to China's currency, arguing that the Yuan is undervalued and thereby providing the country with an unfair export advantage. What's your view
Lo I think that's rubbish. It's partly an attempt to move the focus of attention from the much-needed structural adjustments in Japan's economy, which are facing opposition from entrenched local vested interests.