As China's economy slows, 'business cults' prey on young job seekers
TIANJIN, China: Some look like high-tech firms, promising young college graduates a fast track to riches. Others pose as charitable groups on a membership drive, or companies building a sales network for a new product. Tens of millions across China are signing up - and learning that all is not as advertised.
Behind these groups is a looming challenge for the ruling Communist Party: A proliferation of pyramid schemes that have attracted enormous followings and huge sums of money, exploiting - and exacerbating - widespread anxiety over a slowing economy.
More than 40 million people are now ensnared, perhaps many more, according to the China Anti-Pyramid Selling Association, a nongo nmental group. One scheme shut down this summer was reported to have registered more than 5 million people alone, while another in southern China took in at least $54 million. Last year, the authorities investigated more than 2,800 cases, a 19 percent increase from 2015.
While pyramid swindlers in China have traditionally focused on older people, the business cults exploit highly educated youth from poorer families, law enforcement officials say. In doing so, they are seizing on the anxieties of a generation willing to go to great lengths to avoid the shame of unemployment.
Tanuj Kumar-13 hours ago
China is cracking down pyramid system in the coutnry but it''s president is trying to install another pyramiod system in the name of belt and road initiative... double standard! :)
Maharaj -New Delhi-12 hours ago
China is a rogue nation and Chinese are known to be the most dishonest people on earth.
Vikas Shelke4983 Maharaj Gupta-12 hours ago
And Indian politicians and businessmen are worst, same businessmen dump Chinese products on poor Indians
Nitin Kumar-India-11 hours ago
Indian companies are no different many have mafia and politicians backs.
Somnath DasGupta-Calcutta, India-12 hours ago
Moral of the story - bring down population to 50% of current levels, let 70% of the population thrive on agriculture, chase away western consumerism, go back to traditional joint family system - and you shall see peace all around and less pollution.
Ranvir Mehra-12 hours ago
Difficult times for china ahead.
Sridhar-12 hours ago
It is clearly a case of uncontrolled rapid development, without a thought for future sustainability. Just as pyramid scheme is meant to make owner richer, development in China is meant to make Communist party richer, without a care for what happens to common man. But of course no one talks about that.
Nabarun Dey-9 hours ago
India must take a leaf out of Chinese book as preventive measure. Thank god we have not reached such a pass.
Bikash Sahoo-Cuttack-12 hours ago
Is it like every co unist driven states are such?? The same diseases had spread all over India from West Bengal!!