According to data from the Chinese government, even U.S. imports from China are on the rise ...

This is not true.

U.S. imports from China in the first five months 2026 are around a third lower than in the comparable 2025-period, according to the U.S. census data (you can safely forget trade data published by the Chinese government, especially since Beijing introduced a very weird methodology to calculate its export/import data during the pandemic).

U.S. imports from China in 2025 were around a third lower than in 2024.

Of course, any perceived inflation benefit of importing must be offset by the fact that domestic producers are potentially being undercut, making their businesses less prosperous.

Unfortunately, Goldman Sachs, which was one of the first Western banks to open a Chinese branch in China more than 30 years ago with strong ties to the ruling party, does not elaborate here.

The 'perceived inflation benefit' (is the inflation now perceived or real?) comes at a lower GDP, lower level of employment, and, therefore, a lower disposable income for other markets (such as Europe); not to forget that it makes countries vulnerable for Chinese political and economic coercion as we have increasingly seen in recent years.

It is particularly noteworthy that the alleged inflation is being paid to a large extent by people in China and China-controlled supply chains who work under forced labour schemes.

These are major points in my opinion which Goldman Sachs has forgotten to mention.

“Although the main driver of our relatively benign inflation outlook is that domestic supply and demand broadly appear in balance, ...

I don't understand that. Domestic supply and demand isn't in balance in China, that's for sure. Maybe someone can enlighten me.