China’s tightening credit conditions are leading to more private companies becoming increasingly vocal in their calls for local governments to repay their debts, reports the Financial Times.
The FT cites the case of Huang Ming, CEO of leading Chinese solar company Himin Solar, who took the unusual step of publicly calling out local officials by name and telling government authorities to compensate his company for the $400 million it spent building facilities for a solar conference.
Leading property and construction entrepreneurs have also called on local governments to repay their debts in recent months. Analysts say that the fact that private companies are daring to confront local officials is likely a sign that firms are finding it increasingly difficult to access financing.
Himin Solar has struggled in recent years after rooftop solar boilers—the company’s main product—went out of fashion in China, with consumers and developers opting for electric and gas systems. The company’s profits declined by well over three-quarters between 2008 and 2011, according to the FT.