CNBC's The China Connection newsletter: Navigating a tech-heavy world

Workers work on a production line manufacturing smart automotive central control navigation products at a factory of Beidou Intelligent Connected Vehicle Technology Co. (BICV) in the High Tech Industrial Development Zone in Suqian, Jiangsu Province, China April 9, 2025. China Daily | Via ReutersHi, this is Evelyn, writing to you from Shanghai. Welcome to the latest edition of The China Connection — a snapshot of what I'm seeing and hearing from local businesses.While economists and former central bankers discuss tech and monetary policy at the Bund Summit, companies are moving faster to capture new revenue. What risks bear watching?The big storyChina's seen growing "misallocation" of resources, Krishna Srinivasan, the International Monetary Fund's Asia and Pacific Department Director, told me on the sidelines of the Bund Summit on Monday.That "needs to be corrected," he said, urging policymakers not to "pick and choose sectors" to support, but to allow capital to work according to market forces. It's a tough ask as China has doubled down on technological development, while struggling to transition away from real estate, which once accounted for more than one-fifth of the economy.Lo...