"China's High-Tech Manufacturing Loans Spark Concerns of Export Influx"

China's focus on high-tech manufacturing and increased lending to the sector has raised concerns about overcapacity and a potential wave of cheap exports. While the government aims to make China an advanced manufacturing powerhouse, critics argue that this comes at the expense of domestic consumption and a structural shift needed for sustainable growth. The trend has alarmed trading partners, particularly in Europe, where an investigation into Chinese EV subsidies is underway. Signs of excess capacity are already emerging, such as in lithium-ion batteries and automotive production. However, Chinese production could help curb global inflation, though it may exacerbate trade tensions and the need for market-driven adjustments.