japan's economy experienced this back in the 1990s earlier, i spoke to professor eswar prasad, the formerational monetary fund's china division, and he explained what's behind the slowing economy. the consumer demand has been very weak, and when consumer prices have been flat, it's likely to show that we are in deflationary territory. no producer prices, the prices producers pay for imports of raw materials and intermediate goods, have already been falling and squeezing industrial profits. if we are not in deflationary territory, we are very close and i think we are very close and i think we will see an official confirmation closely. and other asian economy _ confirmation closely. and other asian economy that _ confirmation closely. and other asian economy that suffered i asian economy that suffered from falling prices japan. some say china could be an a similar situation injapan was in back in the 1990s, some people calling it a balance balance sheet recession. do you agree with the assessment? demand is slowin: with the assessment? demand is slowing very _ with the assessment? demand is

earlier, i've spoke to professor prasad, the former chief at the international monetary fund china divisiond of china could be facing a similar situation thatjapan saw back be facing a similar situation that japan saw back in the 19905. , , ., ., ., , 19905. the signs are ominous certainly. _ 19905. the signs are ominous certainly, right _ 19905. the signs are ominous certainly, right now _ 19905. the signs are ominous certainly, right now demand l 19905. the signs are ominous| certainly, right now demand is something very fast, we are seeing very little investment by the private—sector, even official investment by state—owned enterprises is falling, debt levels are high, although corporate debt has been coming down to some extent. but certainly the real estate sector is not doing well, they are property developers were very exposed to the slowdown of the banks. but china still has some tools in its kit that it could use to p"°p up its kit that it could use to prop up the economy, the question is whether they are going to roll out those tools are most importantly whether they can do what is

shery: still ahead, we will discuss china with cornell university's eswar prasad. 20 says many are as own policies. hong kong planning to curb seafood imports from japan over the relief of treated nuclear waste. details next. this is bloomberg. ♪ >> next week, bloomberg's live from the annual jackson hole symposium. our x routines with fed presidents and other economic leaders as they shift the global economy. >> it is not how fast we do it, it is where we go. >> cover starts wednesday, august 23, with a special edition of "bloomberg surveillance," live from jackson hole starting at 8:00 a.m. eastern. bloomberg, your global business authority. paul: country garden is leading investors in the dark about the exact date the grace period ends. for more, let's bring in china editor kevin kingsley. why all of this uncertainty of the payment date? kevin: paul, they are not exactly clear on when the grace period ends for the two dollar vons that country garden earlier did not pay interest on, august 7 was the effective date when these payments were originally due. the actual due date was aug