(Ecns.cn) – Zhejiang is spreading a net of strict surveillance at customs checkpoints to prevent bosses of local small- and medium-sized enterprises (SMEs) from fleeing the country. Currently about 50 bosses have allegedly fled, leaving huge debts unpaid and fueling fears of a possible chain reaction.
Zhejiang Police revealed that all customs administrations will start supervising entry and exit registration procedures strictly, and that any person deemed suspicious can be detained immediately.
Meanwhile, police are also seeking repatriation for the runaway bosses. As of today, three have come back or have been repatriated into China, including Hu Fulin, founder and president of the Zhejiang Center Group, one of China's biggest eyeglass makers.
On September 21, 2011, Hu suddenly disappeared and reportedly left more than 2 billion yuan ($309.2 million) in debts behind. It was also reported that he arrived in Wenzhou yesterday. According to Hu, he bought a round trip air ticket very early, which was not done to flee but to urge payment from a foreign company.
As Wenzhou's capital shortage deteriorates, many SMEs have collapsed under the burden of high interest rates, and some business leaders have been driven into hiding because they can't pay back bloated loans.
Yesterday, the Hangzhou branch of Wenzhou Commercial Bank held a conference, where it was decided that the bank will introduce ten measures to help SMEs pull through the current situation.
