As long as the central bank targets inflation in the overall price level, which it can over  4  BIS Review 107/2006  sufficiently long horizons, cheap goods from China simply imply that other goods must become expensive. From this perspective, we might actually say that China is exporting inflation to other sectors of the global economies".
Whereas I naturally find Kenneth’s theoretical argument persuasive, is it borne out empirically? The global economy is currently awash with liquidity.