In August 2006, the National People’s Congress enacted a new bankruptcy law that gives creditors greater protection if a firm goes bankrupt, and last month it approved a law that gives individuals more legal protection for their property. 11 China, of course, is an example of a country that has actively encouraged exports as a means of propelling its economic growth and development.
As we know, there are significant entry barriers in the credit market, some of which are natural, since the banking system is characterized by economies of scale, and there are built-in information gaps.