China's latest economic indicators for manufacturing and services show weakness, with limited Government appetite for stimulus measures. Beijing has announced 20 measures to boost domestic consumption, but economists doubt they will be enough to turn around the stagnating economy. The Chinese government is reluctant to provide cash subsidies and infrastructure spending, leaving local governments, which are already heavily indebted, to shoulder the burden. The economy is facing deflationary pressures, with falling prices risking business profits, eroding consumer confidence, and increasing unemployment. The government's lack of action raises concerns about a potential Japanification of China.

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