Next act of the Evergrande crisis + Banma car software
China's economy is currently dominated by two major issues: the power shortage and the crisis surrounding the stumbling real estate giant Evergrande. After we looked at the power crisis in yesterday's issue, we now turn to the latest on Evergrande. Finn Mayer-Kuckuk analyzes Beijing's search for ways to tackle the problems at Evergrande without severely affecting other parts of the economy. Because a default seems inevitable.
While the real estate sector is in turmoil, China's electric car segment is booming unabated. And the importance of one particular element becomes apparent: Software that controls intelligent car functions. Frank Sieren takes a close look at one of the leading Chinese companies for smart car software, the start-up Banma. It is already cooperating with many manufacturers, including Volkswagen. Meanwhile, Japanese carmaker Honda announced plans to create a new electric brand in China. From 2030 onwards, Honda won't launch any new models with combustion engines on the Chinese market.
We are also pleased to announce new cooperation: The consulting firm Sinolytics will now present an aspect of China in a weekly graphic. This week, it's about the concept of "Common Prosperity" conceived by President Xi Jinping.