China Shifts Credit to Manufacturing, Potentially Straining Global Supply and Raising US Inflation

China is encouraging investments in manufacturing to revive its economy, which could create upward pressure on US inflation.

There has been a rotation of credit in China towards manufacturing and away from real estate.

If China's credit growth rises over the next 2 years, it could generate higher US inflation.

A manufacturing boom in China would increase demand and costs for producers, eventually raising prices for consumers.

Increased Chinese production would strain global commodity markets and manufacturing supply chains.