E-commerce apps are worsening China’s deflation, NY Times reports

PDD Holdings’ Pinduoduo embodies China’s deflationary moment, with shoppers flocking to the app for its discounts as a result of its unyielding push for lower prices, Daisuke Wakabayashi and Claire Fu of The New York Times says. As Chinese consumers face a real estate crisis and a faltering labor market, many are spending less and saving more, making company prices fall and profits shrink. Since a growing portion of spending in China is happening online, price reductions in Pinduoduo and other e-commerce platforms have contributed to a deflationary downturn in the economy.