The winds for the Chinese economy have not been blowing very favorably. The zero-COVID and the effects of the pandemic, the trade war with the US and the invasion of Ukraine on the global economy have hit the Asian giant's economy. The Chinese government has decided to resort to a classic tool to counteract the headwinds: boosting investment in infrastructure. This strategy is certainly music to the ears of commodity-exporting countries such as Chile.

The problem is that the central government is short of funds to finance this strategy. To solve the problem, it has decided to resort to another classic formula: opening the floodgates of state bank financing. The State Council ordered at the end of May that US$120 billion be made available to finance infrastructure projects.

The funds will come mainly from the China Development Bank, the Agricultural Development Bank of China and Export-Import Bank of China. The funds are expected to come from bond issuance and a possible reduction in the requirements of the People's Bank of China on the reserve ratio that banks must maintain.