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'China's Detroit' struggles to keep its auto industry afloat

Ford and BAIC Yinxiang factories limp along with government fund injections

As China's car market shrinks, snapping a 28-year expansion streak, many foreign and domestic automakers are struggling with unused capacity.   © Reuters

CHONGQING -- China's slowing car market is increasingly prompting local governments to step in and provide financial support for struggling local and international car companies as Chinese government officials fear the effect of rising unemployment.

At the eye of the storm is the central Chinese city of Chongqing. Long a hub for the production of military equipment, it has promoted the auto industry in recent decades. But after China's car market, the largest in the world, shrank for the first time in 28 years in 2018, "China's Detroit" has fallen on hard times.

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