Private companies are being held back in China because lenders tend to favour state-owned enterprises, according to a new report. Above, a team works on an engine production line of Geely Auto in Baoji, northwest China's Shaanxi Province, in 2016. Photo: Xinhua

China’s innovative companies should be zooming ahead. But unfavourable lending system holds them back, report says

  • China’s lending system favours state-owned enterprises, leading companies to put less in R&D to cover short-term loans
  • US companies are far more profitable than Chinese counterparts as a result
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Private companies are being held back in China because lenders tend to favour state-owned enterprises, according to a new report. Above, a team works on an engine production line of Geely Auto in Baoji, northwest China's Shaanxi Province, in 2016. Photo: Xinhua
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