China exports deflation as home demand for steel and autos low

BEIJING/TOKYO -- Prices of some 70% of China's major exports, including steel products and cars, have declined over the last year and companies have increasingly opted to sell excess inventory abroad at low prices in the face of sluggish domestic demand.

These "deflationary exports" from China, which makes up a high share of global production, can ease inflationary pressures overseas -- but can also cause trade frictions price competition intensifies..