China is experiencing a significant downturn in consumer prices, marking the fourth consecutive month of decline, with the latest Consumer Price Index (CPI) slipping 0.1%. The situation is compounded by the worst factory-gate deflation in nearly two years, as economic headwinds mount. Trade relations with the U.S. are worsening, with exports experiencing their largest drop since 2020. As deflationary pressures deepen, policymakers are under increasing pressure to implement measures to stimulate the economy amid ongoing supply issues and weak consumer demand.