China’s slowing growth and excess manufacturing capacity are putting downward pressure on commodities producers around the world who have found they overestimated demand from the country and are being forced to cut prices, even as China’s manufacturers flood export markets with finished goods like steel, tires and solar panels, The Wall Street Journal reported. Chinese demand had previously helped prop up natural resource prices, helping to stave off a downward inflation trend created by a boom in low-cost goods made by low-wage workers there. While far from the only cause of price weakness, China’s size reach and central role in global manufacturing have made it a major contributor to global deflationary pressures.
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