Chinese provinces extort coastal companies, affecting nearly 10,000 firms, despite Beijing's promise to curb the practice.

Some Chinese provincial governments are resorting to extortion to boost their budgets, targeting successful private companies in wealthier regions. This practice, called "distant water fishing," involves inland governments accusing coastal companies of fraud, freezing their assets, and forcing them to pay fines. Nearly 10,000 companies have reportedly been affected. Though Beijing has pledged to standardize such enforcement actions, critics remain concerned about the safety of entrepreneurs in an authoritarian system where laws are controlled by the government.

November 11, 2024
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