China

Record Number of Chinese Blacklisted for Debt Defaults – FT

 

More than eight and a half million Chinese citizens are blacklisted by authorities because they defaulted on debts by missing payments on mortgages or loans, according to a report by the Financial Times, which cited local courts, saying the figure was a record high, up from 5.7 million citizens in early 2020 prior to the Covid pandemic and likely to make it hard to boost consumer confidence.

People who are blacklisted after defaulting on debts are blocked from buying plane tickets and making payments via mobile apps such as Alipay or WeChat Pay if they get sued by banks or creditors for missing a payment deadline, and can even be blocked from government jobs and using toll roads, it said, noting that household debt had doubled over the past decade to 64% of gross domestic product in September and many people were also struggling to find work. Legal experts have proposed introducing personal bankruptcy laws to provide debt relief for individuals but this has been stymied by a reluctance of state workers or other groups to disclose their assets because of fear it could reveal corruption.

Read the full report: The FT.

 

ALSO SEE:

 

Wealthy Families, Private Firms Moving Billions Out of China – NYT

 

Yuan Dives to Lowest Level in 16 Years as Recovery Wanes

 

China Stops Publishing Youth Jobless Data Amid Record Numbers

 

Covid Pushes China Business Confidence to Lowest in a Decade

 

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.

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