The latest economic data shows that China's economy is deflating. Anbound’s chief researcher, Chen Gong, is of the view that as China’s economy is undergoing transformation, the massive stimulus might not only be ineffective but also enlarge the structural problem. As China is facing deflation, the correct way to move forward still lies with promoting the real market-oriented reform while opening new market space in a large scale, for example, the western and the Central Asian markets.