Part 3/10:
The crux of China’s economic troubles lies in the banking sector, which has seen a significant slowdown in lending. In February 2025, the year-over-year increase in bank loans was merely 7.3%, the lowest in recorded history. Compared to the same month in the previous year, the lending rate had dropped from 10.1%, evidencing a concerning deceleration that observers have noted since early 2023. This stagnation in bank lending indicates broader issues in the economy, as the financial sector traditionally plays a pivotal role in facilitating growth.