Wenzhou, the economic core of Zhejiang province in China, has recently seen a myriad of fleeing businessmen in response to the China”s monetary tightening.
Large business owners, primarily involved in the manufacturing industry, have left thousands of employees without a job and a string of unpaid debts. Financial pressures have even led some businessmen to commit suicide, causing shock and great social concern.
The year thus far has seen one fifth of the city”s 360,000 SMEs cease operations due to financial woes. Furthermore, nearly 100 business owners have disappeared or declared bankruptcy to invalidate debts owed to individual creditors.
Whilst police have begun arresting “runaway bosses”, many of the businessmen are believed to have held foreign passports.
These cases of disappearing businessmen cause concern for many overseas companies with offshore manufacturing sectors. In light of recent disappearances, many companies have now sought the services of agencies to help minimise financial deficits. These services range from performing factory audits to organising insurance. For more information regarding these services, please contact us on 02 9653 9127 or email us at enquiry@hornetgroup.com.au.
References:
Weibo Buzz (2011), Wenzhou Bosses Flee Over Big Debts, China Daily, viewed Nov 29, 2011, http://www.chinadaily.com.cn/opinion/2011-09/30/content_13828290.htm
Xinhua (2011), Wenzhou Launches Reforms to Tackle Debt Crisis, China Daily, viewed Nov 29, 2011, http://www.chinadaily.com.cn/china/2011-11/09/content_14067585.htm