Opinion: China is not in deflation, and global investors aren’t ready for what’s coming

The prevailing narrative that China will export deflation abroad and push all other central banks to be more dovish is a classic example of wishful thinking. 

There are plenty of reasons to be skeptical. There is no doubt that Chinese inflation is in a soft patch, but China is not in deflation and a surge of inflation pressures lies ahead that markets are not well-prepared for.  

What…