Important point by the FT: China's "targeted lending differs from broad western-style monetary easing, according to the central bank, by channelling cheap credit into strategic areas to boost the economy without stoking inflation."
This is why I disagree so strongly with the widespread perception that low inflation in China creates more room for monetary expansion. On the contrary, low inflation in China is evidence of excessive monetary expansion mainly because monetary expansion is driven by what in 1980s Japan was referred to as "window guidance". The purpose of monetary expansion, in Japan then and China today, is not to boost market-based demand but rather to boost supply in targeted sectors. Monetary expansion is disinflationary, rather than inflationary.
The FT even starts the article by noting that "Chinese authorities have struggled to disperse $740bn in cheap loans to businesses". That's because the problem facing small businesses is not scarce capital but rather weak demand.