Area Development
In an attempt to slow growth in what is considered a near-runaway economy, Chinese government authorities have ordered the country's commercial banks to freeze lending through the end of the year. The Wall Street Journal reports that bankers - who have been threatened with financial penalties for non-compliance - are complying, canceling loans and credit lines with businesses to stall continued investment. The Journal report also cites the slowing U.S. economy as possible factor in the decision, as the continuing rise of the yuan against the American dollar and other currencies could potentially make Chinese exports less competitive in world markets.