The bankess of the bank will be loaned to a & # 39; slow down

A man next to his exchange zone in the Alibaba performance center.Photocopy
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Building material or # 39; buy stuff? China has long been reluctant to tackle its economic downturn. Now it's trying to & # 39; focus on the last ones.

It will be a great test this year for how long it is to do; from moving from state investment to home consumption as a major driver of growth.

China's President Xi Jinping has warned of "struggle" because his country looks to economic downturn, as he could not see for almost 30 years.

The government has launched a series of inspirational steps not to strengthen the economy, but to guide it.

"China's growth does not grow, it's stable," said economist Andy Xie.

"The option to become inspiring again, this is not on the board. The level of debt is too high, it does not appear in 2008."

& Lesser space to move & # 39;

China's debt has doubled after the 10 year round financial crisis, to around 300% of its economy.

"The very tall now it is not easy to move the economy," Mr Xie says.

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Economist Andy Xie says China's debt levels limit its choices

Whatever he wants for a loan to build, or to encourage people to buy, he thinks that China's Communist Party has little room to move.

"It's not easy to move the needle when the base is so big," he said.

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So what does it do?

It is a tax cut, to put more money into people's pockets. It is to reduce the level of security for banks, so they do not have to maintain the amount of capital in the safe, and in theory – a & # 39; giving more money and delivering expenses.

And yes, it offers money for major infrastructure projects – railings, bridges, and a big city near Beijing.

Companies & High Risk & # 39;

Only one of those steps that can help Wu Yijian.

Mr Wu is a story of success. He is a co-founder of technological start-up of decent ceramics, in different sizes, to help Chinese children. play and learn.

Xiao Bai – no Little White – is led by voice recognition and artificial information Mr Wu and his co-founders have spent 20 years on.

As we stood in an office in Shanghai he called it. He turned to attack us and to weaken him. But private companies are not like the focus on China's incentive efforts.

Tell me "increase" sales in 2018 "but it's not as good as we were planning".

Enterprise federation – private money – they helped to find out where they are.

He says they will not turn to state-owned banks – almost every bank is here owned or under the control of the state – to help if things are done; grow hard in 2019.

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Wu Yijian is responsible for business captains to fund projects such as this robot

"Government banks have little interest rates but this kind of money does not suit the company like us."

He told me that it is the result of a "hate" bank risk and its company is still considered a "high risk".

The largest state-owned companies that benefit from the lowest low loans are large. This kind of beneficial remedy has been a major need for a Communist government who was dealing with a private second-class private enterprise.

"For traditional banks, they prefer competitiveness, as a property. But we have similar technology companies that do not belong to us. Its largest assets are human resources, "said Mr Wu.

He likes tax cuts although he is. It hopes that more parents will buy more dessert roof robots.

President Xi has talked about the "two bad heels" – an uncertain commitment to state-support companies and the private sector.

This is the one after everything that creates with the latest jobs.

The government has committed new commitments to the sale of new cars and the promotion of housing products. One case here is still thinking about a weekend longer, so people can add more to their shop.

Good year ahead

Song Junfu is well placed to deal with any 2019 complaint.

His business is a paper. Even more importantly, a paper for the furniture industry. Mr Song company produces advanced paper using patterns on synthetic leather. That's why it's based in Haining, a town that was developed by the government to focus on furniture.

"For our business, I say, it will not affect that … largely because of the advanced features of our product, [plus] China's produce is very useful. "

As we stood in front of a long, green, four-meter machine machine, he said "we are confident in the market".

He is also supported by the Chinese Agricultural Bank, one of the four largest state-owned banks.

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Song Junfu company has benefited from government support

"Government support can be involved, thus, to help improve their business," he said to me.

"Financially, we can support, to move your project a little faster."

World Trade

More from BBC series a & # 39; provides an international trade perspective:

Mr Song is a private company, and has taken decades of first inspection, then developing and investing to find out where she is currently.

It is very far from the groups that are often ineffective, behemoth.

But as a manufacturer, it is more likely to benefit from any direct promotional steps of Shanghai's robotics makers.

He does not need the help. Even with a trade war with the US causing a lot of concern to China's export exports as he thinks he can take any collision.

"A great, nice circle" on the results they are going across to the USA and said to me, "even if we do 5% or 10% less, we are still working well. "

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