Cash-starved China local governments step up fines with 'grabbing hands'

Property crisis and shrinking tax revenues force scramble for other income

Fog surrounds residential buildings in China's Jilin province. As the country's property crisis eats into local government revenue, the northeastern province's penalties and police confiscations jumped 54.1% in the first half. © Reuters

CISSY ZHOU, Nikkei staff writer

September 24, 2024 12:07 JST

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.