Overview

• 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.