Monday, March 27, 2006

Hey Buddy, Can you Spare a Yuan?--China Law Blog

Interesting discussion on China Law Blog about the state of lending to small start-up businesses in China.

The key point highlighted is that there isn't much credit available for start-up and small businesses to found and expand their operations.

This highlights one of the overall issues that has me uneasy about China, that while there is a lot of money going into the economy there, certain foundational piece of infrastructure remain absent, in this case the availability of credit for small businesses.

There are other similar examples of holes in China's economic infrastructure. I just wonder what will happen first, will the holes be filled in? Or will too many people just fall right into them?

1 comment:

China Law Blog said...

That is the question.

I think some people will continue falling into the holes, sure, but there are not enough big holes to sink the whole ship. However, what is true in China today will not necessarily be true there six months from now.