Linda Lim on NPR: China's Consumer Market

Linda Lim

Professor of Corporate Strategy and International Business
Stephen M. Ross School of Business

LRCCS Faculty Linda Lim was recently featured in an NPR interview about how the PRC government wants to tap into its consumer market. 

“NPR: Beijing has acknowledged the system needs to change. But almost anything it does invites a painful trade-off. Opening up banks to foreign competition means less money will flow into state-owned banks, many of which already have a lot of bad debt. Spending more money on social services means less money to prop up state-owned businesses, and that could mean layoffs. Lim says Beijing is trying to implement reforms without doing too much damage to entrenched interests with government connections.

LIM: So that’s a very difficult and delicate balance between the two. It should ideally take place in a gradual manner, and, in a way, if you rush these things too much you create a lot of dislocations and shocks.”

Click here to listen to the original recording (4 minutes)