‘The tsunami is coming’: China’s exports are just getting started
A staggering $3.1 trillion in extra industrial lending is fuelling a continued flood of exports that could be spread even wider across the world by the Trump tariffs.
Zeekr electric vehicles bound for shipment to Europe at the Port of Taicang. Bloomberg
For decades, the world’s largest car factory was Volkswagen’s complex in Wolfsburg, Germany. But BYD, the Chinese electric car maker, is building two factories in China, each capable of producing twice as many cars as Wolfsburg.
Recent data from China’s central bank shows that state-controlled banks lent an extra $US1.9 trillion ($3.1 trillion) to industrial borrowers over the past four years. On the fringes of cities all over China, new factories are being built day and night, and existing factories are being upgraded with robots and automation.
