When China first became Communist, Mao Zedong wanted there to be no privately owned buisinesses or any Capitalist influences. There was a law that made private businesses have to send in an application asking for the government to take over their business, and then the government would approve it. Nowadays, there are some privately owned companies, but most (70%) of the sucessful enterprises are state-owned. Banks tend to favor these state-owned enterprises (SOEs) and they are a great example of Communism strengthening China's economy. During the Global Economic Crisis, the controlled market economy let the government control most of the big companies' funding (because they were state-owned) and influence those who weren't because invesments
