GM - China Says No Bullet Trains Vacations Or Luxury Stays For Debt Skippers As Delinquency List Soars to 8M | Benzinga
The Chinese government is tightening the noose on debt defaulters, imposing stringent penalties that include restrictions on high-speed rail travel and luxury accommodations. This move is part of a broader crackdown on unpaid bills.
What Happened: Beijing is resorting to severe actions against those who fail to settle their debts. Measures include salary seizures, barring from government jobs, and limiting access to high-speed trains and air travel. Some individuals are even barred from purchasing expensive insurance policies or going on vacation, according to The Wall Street Journal.
The government’s delinquency blacklist has grown by nearly 50% since late 2019, now encompassing 8.3 million individuals. Courts can place people on this list if they fail to fulfill judgments against them or are deemed uncooperative with legal proceedings.
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Unlike the U.S., China does not permit most people to declare bankruptcy to write off bad debts. This policy has drawn criticism from Chinese scholars as unfair. Household debt in the country has surged ...