Chinese exports fuel disinflation in developed countries, analysis finds

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China’s redirecting of exports away from the US amid trade frictions is curbing inflation in other rich economies, according to Goldman Sachs.
The disinflationary trend has been further boosted by reduced Chinese imports as a result of Beijing’s self-reliance policies, adding to supply in global goods markets.
Goldman Sachs economists estimated that these dynamics have lowered inflation by 1.1% in Japan and 1% in the eurozone since 2024. In Canada, the impact is smaller — just 0.2% — because Chinese imports are not as widespread. The economists predicted that China’s expanding current account surplus could even help bring down inflation in developed economies other than the US to within target range.

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