HONG KONG -- Earlier this year, an entrepreneur in one of China's most developed provinces was abruptly detained, together with two dozen of his employees. The police, from a less developed northeastern province, asked him to pay a penalty for alleged misconduct to avoid prosecution. The businessman handed over 50 million yuan ($7 million), after which the police released him and his staff, people with direct knowledge of the matter told Nikkei Asia.
Cases like this have become increasingly common, insiders say, as Chinese local governments scramble to refill dwindling coffers as the country's property crisis drags on. Land sales, a crucial source of local government income, fell 41.8% on the year in August, the biggest single-month drop since June 2015.
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