China influences global prices by exporting deflation, making its goods even more affordable and preventing price increases worldwide.
In Brazil, this trend is helping to reduce consumer goods inflation, as evidenced by industrial goods inflation data for 2023, recording the lowest level in five years, with episodes of deflation in some months. This is reported by Brasil 247, a partner of TV BRICS.
In addition to direct competition with final products, China plays a critical role as a supplier of raw materials to various industries, which contributes to lower production costs in other countries.
At the moment, Beijing is abandoning cheap exports in favor of more technological industries with high added value. Semiconductor manufacturing and artificial intelligence are the two most important areas, but industrial robots are also significant (about half of the global number of them are now working in China), as well as various technologies related to renewable energy.