Structural Problems Plague Chinese Economy

By Tianlun Jian

China’s current economic situation is similar to that in early 2009, perhaps even worse. The engine that is driving China’s economy is sputtering. Exports and investments, the main driving forces of China’s economic growth, are slowing down. The real estate industry, the locomotive that just recently pulled the economy, is also weakening. All three aspects are fading.

China’s Loan Crisis Threatens Privately Held Companies

By Tianlun Jian


An arrangement put in place by China’s state-owned banks to help them extend credit to China’s privately owned companies is now threatening to drag that sector down. A slow economy is making the crisis worse.

On July 16 the Zhejiang Provincial Financial Office acknowledged having received a letter from six hundred private companies in the provincial capital, Hangzhou, calling for urgent help. They are in trouble because of mutual-guarantor loans they had signed.