Deflation is not a problem in the Chinese case because of their unique circumstances. Chinese households have very high savings so they are actually better off from deflation. They also have an ultra high investment rate which is set by the government. So they don’t need to worry about a deflationary spiral.

For other countries deflation will have different effects which may largely be negative (although that still depends on why deflation is happening). However, the fears of deflationary spirals are … completely overblown. Not only does deflation require abnormal circumstances, but fixing it is extremely easy even for capitalist governments.