China's Business Community Faces Crackdown: Allegations of Police Extortion

Reports reveal Chinese police targeting business owners, freezing assets, and demanding money to release funds. Zhang Ke, hiding from police, claims extortion. His business, among many, faces asset freezes due to a legal grey area. Economic downturn drives unlawful enforcement practices, with significant financial implications for local economies.

Widespread reports are surfacing about Chinese police allegedly targeting private business owners nationwide, leading to asset freezes and demands for money in exchange for fund release, according to a Voice of America report. Zhang Ke, using a pseudonym, claims he has been on the run in Guangzhou since September to evade what he describes as police extortion.

Zhang's troubles began in July when his bank accounts were frozen by the Nanle County Public Security Bureau in Henan province. The alleged reason is his remote sports lottery business, which, according to Zhang, prompted authorities to demand USD 55,000 for unfreezing his assets, almost all of his earnings, as Voice of America reported. Zhang argues that thousands are similarly impacted in Guangzhou province alone.

The legal ambiguity surrounding online sports gambling in China has made businesses like Zhang's susceptible to exploitation. While physical lottery ticket sales are regulated, their online counterparts are officially banned. Zhang contends this murkiness allows cross-provincial law enforcement to capitalize on the confusion, exploiting business owners.

The phenomenon dubbed "offshore fishing" by internet users reflects a practice where police from one province seize business assets in other regions, often transferring seized funds to personal accounts, as reported by VOA. "Funds are directed into personal accounts, not official ones," Zhang remarked.

Experts link economic difficulties to this rise in unlawful enforcement. Teng Biao, a professor at Hunter College, highlights that local governments' economic challenges, exacerbated by the housing market slump, have led to "offshore fishing" for financial sustenance. "Selling land used to support their budgets," Teng explained, "but economic conditions have removed that lifeline," VOA reported.

Business owners, including Zhang, often feel they have no choice but to pay these illegal fines to avoid imprisonment. "Refuse to pay, and you'll face detention," Zhang stated. He now sees leaving China as his only viable option, expressing deep dissatisfaction with the current climate. "I can't stand living in China any longer; it's unbearable," he lamented. (ANI)

(With inputs from agencies.)