Legal Analysis: Enterprises can only become borrowers in China, but not lenders. In other words, China's legislation prohibits enterprises from lending to each other because it helps to standardize the business scope of enterprises; It helps to maintain the national financial order. Finance is the lifeblood of a country's economy, and the country must control it. If enterprises are allowed to borrow from each other, it will inevitably lead to financial disorder and bring losses to the national economy. Therefore, the loan agreement signed between the company and the company should be invalid. According to the current laws of China, loans cannot be made between enterprises that are not financial institutions. If a loan occurs, the legal consequence will naturally be that the contract is invalid, the principal will be returned, and the interest will be confiscated and recovered by the state in theory. Loans are allowed between enterprises and individuals and between individuals, and the interest shall not exceed four times the bank interest. Lending between enterprises is a long-standing folk economic behavior, but there are many legal definitions of this behavior. When an economic behavior is "reasonable but illegal", the legislature should do something.

Legal basis: Article 2 of the General Rules for Loans in People's Republic of China (PRC) The lender mentioned in these General Rules refers to a Chinese-funded financial institution legally established in China to engage in loan business.

The borrower mentioned in these General Rules refers to legal persons, other economic organizations, individual industrial and commercial households and natural persons who have obtained loans from Chinese-funded financial institutions engaged in loan business.