Crony capitalism in china

All banks in china are run by chinese

communist party
Most of the investments are tightly controlled
by govt. Including foreign investments
Private sector firms have very less access to
finance or new markets

How it is bad for china?

According to world bank reports china is one of the
most unequal economies in Asia.
1% of chinese people control over 60% of the
countries wealth
About 90% of china's billionares are children of high
ranking govt. Officials
Corruption has become a part of the system
Chinese central bank's research shows state directed
lending led to 60% of bad loans in 2001-2002.

CASE STUDY