Helping China cut carbon emissions isn’t a financial game every business can play
BEIJING — China has a lot more to worry about at home than its foreign policy. Some energy-related companies in the country have found themselves caught in a business cycle that shows how difficult it can be for stimulus to help the economy in the form of bank loans.
The world's second-largest economy contracted 6.8% in the first quarter at the height of the coronavirus pandemic. Among many measures to support growth, authorities have repeatedly emphasized how banks need to lend more to smaller, privately run businesses versus state-owned giants.
At the same time, Beijing has increased efforts to develop renewable energy, which can ultimately give China an edge in globally sought-after technology. But the coronavirus has made banks and investors more cautious about putting money into such unproven technologies, and history indicates the challenges run deep for any privately run company that might want to participate in this growth opportunity.
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