There were more worrisome signs of inflationary pressure in China, as Beijing announced that bank lending climbed briskly in March and the central bank failed to sell all the treasury bills that it tried to auction at current interest rates.
Does this sound familiar?
To make matters worse, China's banks are widely described as very corrupt and vulnerable to political pressures to lend money to well-connected borrowers who are unlikely to repay their debts. Borrowers who do not expect to have to repay loans, or who have access to more loans regardless of their creditworthiness, may go on borrowing and spending even if interest rates increase.
Sounds like the Japanese to me.
