Except it isn't really a government giving money to itself, it's the banks. When and if the enterprises default, the banks will go under. This means that Chine

Except it isn't really a government giving money to itself, it's the banks. When and if the enterprises default, the banks will go under. This means that Chinese people will lose money (or the government will try to be fiscally prudent to recover money lost in bad investments, which will mean that Chinese people will lose money). Money owed by a government owned bank to a government owned enterprise is a real debt, which if defaulted upon will have a lot of real effects.