China Shifts Lending to High-Tech Manufacturing, Sparking Fears of Overcapacity and Cheap Exports
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China is steering loans toward high-tech manufacturing like semiconductors and EVs, raising concerns of overcapacity and cheap exports.
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Lending data shows big jumps in loans to manufacturing while property loans fell, indicating government priorities.
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Key trading partners like Europe fear a collision with China's overcapacity, with Chinese subsidies already under investigation.
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China aims to be an advanced manufacturing powerhouse under Xi Jinping, but critics say it ignores the need for domestic consumption.
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Signs of excess capacity are emerging in batteries, cars and more, but China's overall investment growth is slowing in response to weak demand.