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Noah Smith: Chinese subsidies often involve below-market bank loans to companies
Noah Smith, columnist / economist at Bloomberg Opinion, observes that most Chinese subsidies come in the form of below-market bank loans.
He explains that these loan arrangements create long-term relationships between banks and companies, often obliging banks to continually renew the loans or otherwise recognize losses.
Smith previously wrote that Chinese economic policy under Xi Jinping focuses on national strength, rather than the economic benefit of ordinary citizens, in a recent analysis. In a separate report, he argued that Canadian supermarkets operate with minimal profit margins. These topics reflect Smith's ongoing coverage of global economic policy and corporate finance.
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