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Defaulters in China May Face Tougher Penalties: Bloomberg

By Dave Yin / Jan 23, 2019 04:22 AM / Business & Tech

Photo: VCG

Photo: VCG

Punishments doled out as part of China’s social credit system may grow more severe as China’s top judge pledged to tighten controls barring those who defy court orders from making investments and holding certain jobs, Bloomberg reported.

Supreme People’s Court President Zhou Qiang warned that those who are dishonest should expect punishments in all areas of life, according to the report. Zhou made the remarks at the World Enforcement Conference in Shanghai, with judges and other law enforcement representatives from more than 30 countries.

Zhou said individuals who defaulted on loans were already restricted from traveling, buying homes and holding “high-level jobs,” Bloomberg reported.

China has been ramping up elements of the social credit system, set to go nationwide by 2020, against a backdrop of a sweeping crackdown on corruption.

In 2018, those with a low credit scores were prohibited from a total of 17 million flights, 5 million train trips and 290,000 instances of acting as executives or legal business representatives, according to the Supreme People’s Court. Some high-profile businessmen were blacklisted by courts for debt defaults, including LeEco founder Jia Yueting and Ofo founder Dai Wei.

Related: Ofo Founder Blacklisted by Court Amid Debt Woes

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