@kentwillard Domestic underconsumption is really only a problem for China if it comes with political discontent, if the public is unhappy with reduced consumption in ways that threaten “stability”. Xi is very resistant to stimulus or welfare state support of consumption, but he does have those options, deflation is the current concern, inflation not a binding constraint. If domestic underconsumption / citizen discontent becomes a problem, the state will (however reluctantly) support demand. /fin