I don’t know if deflation itself is that harmful or if it’s just a symptom of economic troubles, i.e. lack of demand. In any case, if it persists, that’s not a good outlook for the Chinese economy.
Imagine having a “president” with less freedom to travel than Kim Jong Un.
Just wait until the next currency crisis hits and the Pound falls below Euro parity. Since the introduction of the Euro in 2000 the Pound has already lost almost 30% of its value in a direct comparison and could not recover since the Brexit vote.
Is there free will? Are we all living in the matrix? questions…