Beijing to give $145bn credit line to Red Flag carmaker&nbsp;FAW

Chinese state-owned carmaker FAW Group is poised to receive CNY1.015tn ($146bn) of credit facilities from the government, the biggest such sum in China's history. The move comes after a slowdown in sales and signs of fragility in the economy. In addition, new regulations allow more foreign ownership of joint venture carmakers. Wang Feng, the chairman of Ye Lang Capital, said the deal signals that state-owned businesses are still important to the government. The carmaker produced the famous Red Flag limousines used by senior Chinese officials. It also assembles Audi cars in China and is partner to Volkswagen and Toyota.

President Deng Xiaoping inspects troops from the back of his Red Flag limo during a military parade on the 35th anniversary of the founding of the People's Republic of China, October 3, 1984. Photo: Xinhua