You forgot the sentence before: > “The­ government should allow zombie companies to default or go bankrupt,” This probably means that in China, they just let

You forgot the sentence before: > “The­ government should allow zombie companies to default or go bankrupt,” This probably means that in China, they just let the company "rot" in zombie state instead of letting it go bankrupt. In Belgium, a company needs to submit paperwork regularly, and if this doesn't happen, afaik, the company can be declared bankrupt by the government. Belgium has a large numbers of companies per capita. Our tax system nudges us to create companies for employment and investments, because of the high personal taxes. This skews the comparison.