China's Shift to Manufacturing Economy Sparks Global Trade Concerns
As China's property sector declines, President Xi Jinping's focus on manufacturing, particularly in electric vehicles, batteries, and renewable energy, could ignite new global trade tensions.
- China's leader, Xi Jinping, is shifting the country's economic model to manufacturing, focusing on electric vehicles, batteries, and renewable energy, as the property sector declines.
- This strategy is helping China avoid the recessions that hit Japan in the 1990s and the United States in 2008 when their housing markets collapsed.
- However, the shift is fueling imbalances that could trigger renewed global trade conflicts, affecting both developed and emerging economies.
- The U.S. and European Union have escalated warnings about China's increasing capacity, leading to a series of trade investigations.
- Despite global tensions, China remains steadfast in its strategy, with Xi Jinping referring to manufacturing as the 'lifeline' and 'foundation' of the country.
The Japan Times 
Financial Post 