China responded to the crisis with a large-scale stimulus program, increasing lending by banks to large, state-owned enterprises that totaled 4.4% of GDP over three years (Horton and Ivanova 2009). These loans were used largely to finance infrastructure and housing projects. China’s growth had fallen from a recent high of 14%, in 2007, to 9% in 2009. With the boost from the government stimulus, growth rebounded to 10% in 2010. That is, in the face of the worst global financial crisis in many decades, China’s economic growth actually increased.