joining this morning is valerie tytel, lizzy burden and we're joined by rebecca choong wilkins. let's start on the china story. rebecca, i'm going to pick on you. country gardens' decline has been incredible to the point where it is a penny stock. it is down 15% today but that is only a move of $.10. these mounting concerns that it will default, how prominent are those concerns and what would be the global ramification? >> that is really the big question. it is an extraordinary decline for a country like country garden. even though so many of its peers have already default it, it survived all that two years. when i reported on country garden three years ago it was china's largest developer by sales, it is still the sixth largest by sales, four times more than evergrande. it is a major player in china, and if we see default, analysts have warned it could do more damage than when evergrande failed to make that payment in 2021. there are a couple of reasons for that. the first is we have seen so much pain in the real estate sector. sentiment has been damaged and has weighed heavily

let's bring more with our roundtable and bring in rebecca choong wilkins and gina you. when it comes to china inflation, how should we look at this number? absolutely -- rebecca: absolutely. ppi, a little worse than expected but firmly in deflation territory. when you take the triple whammy of data we had yesterday, contractions of exports and imports, there is quite a strong headwind for china. unlike when we saw data falling a year ago which was the result of falling port prices, the problem is much more persistent. ultimately it is about consumption and demand. there's a couple elements. in part, china's unwillingness to launch broad scale stimulus. that remains an issue. the other issue is even if we do see more stimulus, that implementation take quite some time to play through the system. when you still have these property worries, look at country garden. this is china's 6th largest firm, struggling to potentially survive. i mean, you can see why confidence in china is so thin at the moment. yvonne: we have seen a little bit of a rally since this politburo meeting.

let's bring in our asia government politics respondent rebecca choong wilkins. flail, i'm sorry. go. i'm a bit dyslexic. i missed the silent i on that one. rebecca: the big question everyone is asking is why is the time news -- china communist party not doing more to support economy right now. the big take tries to address that question. what we see is we need to understand the long-term ambitions of xi jinping here. he wants to clean up off-balance-sheet debt and shift away from debt fueled growth and the risk that creates at the local government level and he wants to create the problem of oversupply and a potential market bubble popping in the property sector. and these fundamental goals are not just sort of intention with this downward spiral in that flailing that you see now but actually have caused that weird and when we understand that, we understand extent to which xi jinping in the party have already exhibited the extraordinary tolerance for pain because this is part of a campaign as they see to clean up risks to china's economy long-term and some amount short-term pain i

rebecca choong wilkins joins us. what stood out for you?and imports and deflation risks too. export numbers, the mist from the forecast i have your drag on the economy then we initially expected. the year-over-year comparison was always going to be tough because last year we had this left after the lockdown on shanghai was lifted and that helped boost numbers there. there was always going to be a challenge, but this is certainly more negative than people were expecting. the other issue is this global drop in demand. we saw pmi numbers signaling a contraction for several of china's key trading partners -- the united states, there euro area, japan. yet another worry. haslinda: the triple whammy. >> in general, economists were not expecting to see any of the promised stimulus showing through in this set of data. it will take a long time to implement any policy. i think there is moderation of expectations. we saw this dovish tale help to spur the rally in some chinese equities, but there was more of a sanguine reassessment. the worry is there i