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Economics

Party Loyalty in China Helps Private Companies Get Cheaper Loans

A new government program offers low-interest “red loans” to firms supporting the Communist cause.
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President Xi Jinping has overseen a resurgence of party influence in China over everything from corporate boards to houses of worship, famously using a phrase from Mao Zedong: “East, west, north, and center—the party leads everything.” Nowadays it appears China’s Communist Party even controls which private companies get bank loans.