Wen Jiabao the 69 year old the sixth and current Premier of the State Council of the People’s Republic of China, serving as China’s head of government has called for the break-up of a banking “monopoly” over lending practices that has prevented businesses from borrowing the money they needed for expansion. Wen stated during tours of company sites in Fujian Province and the Guangxi Zhuang Autonomous Region, “Regarding raising funds for your businesses, I think it has been too easy, quite frankly, for our banks to make profits, the reason is that a small number of large banks are in a monopolistic position. It is only from them, and nowhere else, that companies get the loans they need. This is why we’ve now come to make way for private capital to enter the financial services sector, which ultimately requires breaking monopolies. There is already a consensus among the central leadership, which is reflected, as you can see, by the pilot reform in Wenzhou. I think some successful practices from Wenzhou’s pilot reform can be introduced nationally. Some of the practices may even be immediately implemented. The monopoly in the sector makes getting loans expensive. Private businesses, especially smaller ones, have to get cheaper loans to flourish.”

 

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