According to SOH, the governor of Jilin recently urged the government for small and medium-sized companies to help improve Jilin’s economy. Several political and economic observers said that China’s economic and financial system had reached a point where there is no turning back.
According to statistics of the Ministry of Finance, China’s general fiscal revenue in the first half of this year was 13 billion yuan. The public fiscal expenditure was nearly 18 billion yuan, exceeding revenues by about $700 billion (5 trillion yuan) in the year’s first half.
According to a report by China Business News, as the general public budget revenue and expenditure, in the first half of this year, among 31 provinces, only Shanghai had a “fiscal surplus,” and the remaining 30 provinces had problems with revenue and expenditure.
In May 2022, the executive meeting of the State Council of the CCP mentioned small and medium-sized enterprises (SMEs) and individual industrial and commercial households are the foundation for stabilizing the economy and the leading force for stabilizing employment.
All localities are required to increase support and investigate government agencies, institutions, and big companies. Delinquent accounts of small and medium-sized enterprises will be discovered and paid off together.
According to mainland media reports, Han Jun, Governor of Jilin Province of China, went to Changchun for inspection on September 7. He received a message from Huateng Engineering Project Management Company about the debts.
The governor immediately collected debts and asked the Erdao District Government of Changchun City to repay the debts and asked the relevant departments of Changchun City to check the outstanding accounts of SMEs as soon as possible in accordance with the principle of “repayment in accordance with the law and should be fully settled” business development environment.
Professor Xie Tian of the Aiken School of Business at the University of South Carolina said on September 11 that the biggest advantage of private companies in the United States doing business with the Chinese government is receiving the money. Still, it may be slower because of the entire bureaucratic process.
In China, slow repayment is not the problem, but the inability to pay and defaults.
Xie Tian recommended that the debt collection company needs to deal with it or take it to court.
This kind of administrative intervention is rather strange, but it is effective in the special corporate environment of China, which is a defect of a legal area.
Another point is that the government is out of money and cannot support SMEs to make ends meet.
The founder of Frontier Preliminary Policy, Cui, said to Digital Taiwan that the CCP’s finances won’t last for the next two years.
After the 20th National Congress of the CCP, no matter whether Xi Jinping is re-elected or not, China’s economic and financial system has reached a point where there is no turning back.