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China launches crackdown against 7 mn bank defaulters, shows India how to deal with debtors

With examples of bank defaulters like Vijay Mallya, absconding from the country, still fresh in the minds of Indians, China has taken another strict step towards penalising the debtors and defaulters.

China’s Supreme People’s Court has blacklisted 6.73 million bank defaulters and restricted them from travelling by plane, applying for loans & credit cards or getting promoted. (Reuters)

With examples of bank defaulters like Vijay Mallya, absconding from the country, still fresh in the minds of Indians, China has taken another strict step towards penalising the debtors and defaulters. In an unprecedented crackdown, China’s Supreme People’s Court has blacklisted 6.73 million bank defaulters and restricted them from travelling by plane, applying for loans & credit cards or getting promoted.

As reported by Global Times, till date, the Chinese government had barred 6.15 million people from buying plane tickets and 2.22 million from travelling by high-speed train. Supreme people’s Court enforcement bureau chief, Meng Xiang has confirmed that SPC has cooperated with airlines and railway companies to bar the defaulters with the help of their official IDs and passports. The implementation of the ban based on passports was initiated as earlier many defaulter with barred ID card numbers started buying plane tickets with their passports.

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While a total number of 71,000 defaulters have been barred from serving as corporate representatives and executives, more than 5,50,000 loan and credit card applications from defaulters had been barred by the Industrial and Commercial Bank of China.

As per Global Times report, Meng has further stated that the court’s list of blacklisted defaulters include government staff, members of local legislative and political advisory bodies, and Communist Party of China congress delegates, while some had also been slammed with expulsion or demotion.

With the latest crackdown on effect, at least one million defaulters had voluntarily abided the court orders.

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