Since 2005, People's Bank of China, the Chinese Federal Reserve, has been carrying out a plan to reduce amount of loans that private companies can get from Bank. It is totally working. Now large number of small companies are going out of business because of lacking of cash.
State owned business always get favorably inclined when applying for loans. So they don't really feel the pain. It is the private sector who is dieing from all the squeezing.
It is a good time to buy out those private firms in China if you have cash and business plans.
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