ANI | Updated: Nov 10, 2024 11:46 IST
Washington [US], November 10 (ANI): Disturbing posts circulating on social media platforms indicate that law enforcement agencies throughout China are systematically targeting small business owners. These police forces are alleged to be freezing assets and demanding hefty payouts in exchange for the release of funds, as highlighted in a report by Voice of America.
Zhang Ke (a pseudonym for anonymity), a man who has been evading authorities in Guangzhou since September, claims he is innocent yet feels compelled to hide to escape extortion tactics used by the police.
His harrowing experience began in July when the Nanle County Public Security Bureau in Henan province froze all of his bank accounts. The reason cited for this drastic measure was his sports lottery distribution business, which allowed clients to engage in gambling remotely. In order to unfreeze his accounts, the authorities demanded USD 55,000, which represented nearly all of Zhang’s earnings, according to Voice of America (VOA) reports.
Zhang has discovered he is not alone in his plight; nearly 10,000 such incidents involving asset seizures have been reported solely in Guangzhou province. Many business operators, like Zhang, find themselves vulnerable to this type of extortion due to the precarious legal environment surrounding their enterprises.
His business, primarily focused on facilitating online gambling through social media channels, operates within a murky interpretation of Chinese gambling laws. While physical lottery ticket sales are tightly regulated, online sales of sports lottery tickets are unequivocally banned.
However, as Zhang’s company does not distribute physical tickets, the interpretation of the law remains ambiguous and susceptible to manipulation. Zhang contends that this legal vagueness empowers cross-provincial police officers to exploit business owners for financial gain. “The lack of clarity and standards for interpretation provides these cross-provincial police officers an opportunity to incriminate tens of thousands of store owners,” Zhang elaborated.
The phenomenon, described by internet users as “offshore fishing,” has proliferated across the country. In these cases, police from one province are seizing assets from businesses located in other provinces, with funds often being redirected into the pockets of individual officers rather than the official accounts of the public security bureau, reports indicate.
“The police asked them for money and the money was then transferred to the policemen’s personal accounts, not to the public security bureau’s corporate accounts,” Zhang further explained.
Experts suggest that China’s ongoing economic downturn significantly contributes to this surge in unlawful policing practices.
Teng Biao, a scholar at Hunter College, elucidates that local governments—once dependent on land sales for generating revenue—have increasingly resorted to the tactic of “offshore fishing” in order to replenish dwindling financial reserves. “The local governments used to rely on selling land for financial resources. But the economic downturn and crippled property market stripped them of that option,” he articulated in the VOA report.
As a result, numerous business owners, including Zhang, have been coerced into paying these illegal fines to avoid arrest. “If you don’t give the police money, you’re going to be locked up,” he confided.
Desperately, Zhang has concluded that his only viable option may be to flee China entirely. “I don’t want to live in this land of China anymore; it’s disgusting,” he asserted. (ANI)
**Interview with Zhang Ke: An Inside Look at Police Extortion of Small Business Owners in China**
**Interviewer**: Thank you for joining us today, Zhang. Can you start by telling us how your experience with law enforcement began?
**Zhang Ke**: Thank you for having me. My ordeal started in July when officials from the Nanle County Public Security Bureau froze all my bank accounts. They claimed it was due to the nature of my sports lottery distribution business. It was shocking because I have always believed I was operating within legal boundaries.
**Interviewer**: Can you elaborate on the nature of your business and the legal ambiguities surrounding it?
**Zhang Ke**: Sure. My business facilitates online gambling through social media. While the sale of physical lottery tickets is heavily regulated in China, there’s a gray area regarding online sales, particularly for sports lottery tickets. Because I don’t distribute physical tickets, the law around my operations is very vague, which makes it easier for police to target businesses like mine.
**Interviewer**: You mentioned that authorities demanded a significant sum to unfreeze your assets. Can you share more about that?
**Zhang Ke**: Yes, they demanded USD 55,000—essentially all of my earnings. It felt like extortion. I was told that if I wanted my accounts back, I had to comply. Many people have faced similar situations. In Guangzhou alone, nearly 10,000 incidents of asset seizure have been reported. It seems the police are systematically exploiting small business owners.
**Interviewer**: That must be incredibly stressful. Have you spoken with other business owners who experienced similar issues?
**Zhang Ke**: Yes, I have connected with many. Most feel powerless against the local authorities. The precarious nature of the legal environment makes us particularly vulnerable. The police can misinterpret the law to their advantage, applying pressure and resorting to intimidation tactics to get what they want.
**Interviewer**: What do you think can be done to protect small business owners from such extortion?
**Zhang Ke**: There needs to be greater accountability for law enforcement. The legal framework should be clarified to differentiate clearly between legitimate businesses and illegal enterprises. Moreover, there should be advocates for small business owners who can help navigate these threats.
**Interviewer**: Thank you, Zhang, for sharing your experience with us. It sheds light on a troubling issue for many small business owners in China today.
**Zhang Ke**: Thank you for having me. It’s essential that these stories are told, and awareness is raised.
