China is selling a $60 million textile factory, a rare opportunity for a country that is facing a massive debt crisis.
The factory, which is owned by the state-owned factories giant Dalian Wanda Group, is expected to be completed in 2019 and produce more than 1 million garments.
The deal was announced last week by China’s government as part of a wider plan to make the country’s manufacturing sector more efficient and competitive with overseas competitors.
The deal also includes a $10 million loan to Dalian, which will help finance the construction of the factory.
Dalian Wanta, which also owns Dalian Group’s other factory in Zhengzhou, has said the deal will allow it to make more garments at a faster pace, including a new line of pants, pantsuits, underwear and shoes.
The new factory is expected in Zhengding county, near the Chinese border.
China is now the world’s largest importer of apparel and textile products, accounting for more than 60% of global exports.
The U.S. has a trade surplus with China of $19.7 billion in 2017, according to the U.N. statistics office.
Danish Prime Minister Lars Løkke Rasmussen, who is in China on a state visit, said in a statement that Dalian has committed to “further strengthening its cooperation with China to build a new global business environment for the Chinese industry.”
The announcement came less than a month after China’s Ministry of Commerce announced a plan to increase its economic clout in the Asian trading partner, and the first step toward diversifying the countrys trade.
Dalian is the country s biggest textile company and is the largest of its kind in the world.
Dang Dong, an analyst at the research group IHS, said the Dalian deal shows the country is willing to take on more risk to secure its position as a global market leader.
“The fact that they have this deal, and that they are going to invest $60 billion is a good sign for them,” he said.
Dang said the move will not only increase Dalian’s competitiveness in the global market, but also put pressure on other textile firms in China, such as J. Crew, Gap and American Apparel.