Round Table China Credit blacklists: Fair or excessive?
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May 27, 2025 China's credit blacklist targets willful defaulters, imposing severe consequences like travel bans. The discussion delves into the enforcement criteria, raising questions about fairness and public shaming. Individual stories highlight the complexities of financial distress, alongside debates about redemption and bankruptcy options. A comparative view showcases Shenzhen's evolving bankruptcy laws, emphasizing the struggle to balance second chances with accountability in the financial system.
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Purpose of China's Credit Blacklist
- China's credit blacklist targets those who can repay debts but refuse, using legal and social restrictions to enforce repayment.
- It aims to balance accountability with social consequences to pressure debtors.
Criteria for Blacklisting Debtors
- Being put on the blacklist requires a court ruling proving a willful debt refusal despite means to pay.
- Obstruction, false litigation, asset concealment, and overspending also justify blacklisting.
Consequences of Being Blacklisted
- Blacklisted individuals face bans on flights, high-speed trains, luxury purchases, and vetting for jobs and schools.
- Personal info is publicly posted, enhancing social pressure to repay debts.