The Chinese Yuan has weakened to a 16-month low of 7.3316 against the U.S. Dollar, amid fears of potential tariff increases from the incoming Trump administration. This depreciation is attributed to concerns over China's economic growth prospects. Additionally, China's bond market is signaling deep worry over a possible decades-long economic downturn, with bond yields dropping to all-time lows. The 30-year bond yields have fallen below Japan's for the first time, reflecting deflationary pressures reminiscent of Japan's 'lost decade' in the 1990s. China's consumer prices in 2024 showed minimal growth at 0.2% year-on-year, indicating feeble demand and persistent deflationary pressures. The producer price index (PPI) also continued to decline, dropping 2.3% year-on-year in December, marking 27 consecutive months of deflation. These economic indicators suggest that China might be facing a prolonged period of economic stagnation, similar to Japan's experience, unless more aggressive stimulus measures are implemented.