China's e-commerce, particularly Pinduoduo, exacerbates deflation due to price-cutting competition.

E-commerce in China, especially through platforms like Pinduoduo, is worsening the country's deflation. Sellers, like Lin Yunyun, are pressured to continuously lower prices to attract customers, risking their profitability. This price-cutting creates a cycle that intensifies deflation, as lower prices become necessary for survival. With 60% of consumers shopping online, Pinduoduo's strategy significantly impacts China's economy and retail landscape.

October 07, 2024
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