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"China took the lead in calling for and supporting the extension of the Debt Service Suspension Initiative," said Liu.

"Consumers with more knowledge about cars are more willing to buy second-hand cars as it is more cost-effective," he said, adding that the average age of Kaixin's customers is under 40.

"China's construction machinery producers are gradually losing their low-cost labor advantage and do not yet have the best technologies to lead the industry on a global scale. Chinese companies must act quickly to retain their domestic market lead," said Zhao of the IIE.

"Countries involved in the Belt and Road Initiative are intensifying their infrastructure building and require large amounts of steel products, which can be met by Chinese steel producers," said Wang Guoqing, research director at the Lange Steel Information Research Center.

"Compared with petrochemical and coal-chemical, it is cleaner and more efficient and signifies our industrial transformation," Xu said.