The Standard reports that many Chinese companies are being forced to bend or break rules to raise cash to survive. As Beijing's austerity drive bites companies are resorting to various tricks to obtain cash:

They are evading administrative roadbocks to domestic borrowing by applying for foreign currency loans which are then converted into yuan, diverting approved loans to other uses, and under-reporting production and investment in order to free up internally-generated cash.

Yet Chinese companies have for years been remarkably adroit at getting around the rules when there is money to be made. Though no one can quantify it, virtually all analysts agree that a significant part of the US$53 billion (HK$413.4 billion) in ``foreign direct investment'' last year was really mainland-controlled money that is moved offshore then brought back in order to evade capital controls and sometimes to win investment incentives aimed at foreign, not Chinese, investors. (my emphasis)

Finally don't forget that this austerity drive does not apply equally. Companies with the right connections can get around anything in China.

* _{Wal-Mart imported US$12 billion from China in 2002 and 10% of all US imports from China go via Wal-Mart.}