A squeeze on lending hits China’s entrepreneurial heartland
TAXI drivers, to the puzzlement of economists, often work
long hours on slow days and clock off early in busy periods. In Wenzhou, a city in China’s
Zhejiang
province famous for its entrepreneurs, drivers are cannier. At busy times, they
keep their “For hire” lights on even after picking up a passenger, hoping to
find another fare going in the same direction. That way, they double their
money—although only one fare registers on the meter. With lots of bustle and a
little hustle, Wenzhou businessmen have
contributed enormously to China’s
economic progress. That success continued in the third quarter, when China’s output
grew by 9.1% compared with a year earlier (see chart 1). But the threats to
growth are mounting, and Wenzhou
symbolises one of the dangers.