Falling prices in mainland China present challenges for Hong Kong businesses, driving residents across the border to Shenzhen for cheaper goods and groceries. As China grapples with deflation, its impact on global trade is debated, with economists noting potential risks for smaller countries and neighboring regions like East Asia. Hong Kong, heavily reliant on the US dollar and closely aligned with mainland China economically, faces a complex economic landscape, marked by a mix of growth indicators and underlying challenges such as foreign business exits and a sluggish real estate sector. Despite past political tensions, Hong Kong residents increasingly embrace economic ties with Shenzhen, flocking to the city for shopping trips and creating new entrepreneurial opportunities amid economic uncertainty.