Commentary On Dec. 22, 2020, Sichuan Trust was officially taken over by China’s regulators for restructuring, after the company was found to have violated finance-related laws and regulations, according to Chinese media reports. Since the beginning of this year, China’s trust industry has collectively failed to repay investors. The four pillars of China’s financial industry can provide a picture of its scale: there are about 4,500 banks, with total assets of about 309 trillion yuan ($47.29 trillion); 68 trusts, with total assets of about 21 trillion yuan ($3.21 trillion); about 200 insurance firms, with total assets about 20 trillion yuan ($3.06 trillion); and about 130 securities firms, total assets of 7.8 trillion yuan ($1.19 trillion). Each of the 68 trust licenses is precious. At present, the controlling shareholders of the 68 trust companies are: 29 local state-owned enterprises, 16 state-owned enterprises, 13 state-owned banks and financial institutions, and 10 private …