Why Chinese authorities are suppressing economic data and banning the word deflation

China is struggling to recover from its recent economic shutdown. As growth falters, the government is reportedly pressuring analysts to ignore negative trends and stop using the term deflation, while simultaneously halting the publication of sensitive statistics to manage public perception.

The Chinese government has increasingly restricted access to economic indicators as domestic challenges mount. In April, consumer confidence reached levels comparable to the 2022 lows, leading the National Bureau of Statistics to cease reporting the metric. Similarly, after facing an expected seventh straight month of rising youth unemployment, officials suspended the release of that data entirely.

Beyond immediate economic stagnation, the country faces long-term structural hurdles, including demographic shifts stemming from the historical one-child policy. These pressures have intensified concerns regarding the leadership's capacity to effectively stimulate the economy, prompting a strategy of silence around negative performance indicators.

Source: China - Don't Say Deflation!