Image by Fantake via Flickr"My suspicion is that the stimulus will basically benefit the state sector at the expense of the private sector," said Arthur Kroeber, managing director of Dragonomics, an economic research firm in Beijing.Earlier, also assistant-professor Victor Shih dug up a document from the People's Bank of China that suggested that not private companies, but state-owned construction companies were getting the bulk of the stimulus package.
Before that Shaun Rein pleaded for a US-style support for smaller private companies, that have been more efficient for job creation, compared to the corporate giants.
Commercial
Arthur Kroeber, Victor Shih and Shaun Rein are all three speakers at the China Speakers Bureau . When you need them at your meeting or conference, do get in touch,
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FYI - This is sure to be true, but we are seeing efforts within the government to provide funding to SMEs in the short term. For example, in this week's Economic Observer (经济观察）newspaper, there is an article entitled "融资租赁也振兴规划出水." The article outlines a government plan to provide credit guarantees on behalf of private companies so they could acquire manufacturing equipment and other technology. According to the article, many private companies can't get loans because they lack assets to secure their loans. This particularly applies to smaller, younger private companies. The government can try to counter this by establishing fund that will work to secure the loans. The fund is expected to be RMB 300 billion (RMB 100 billion from the central gov't and RMB 200 billion from local governments) in size. We'll see if it passes …
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