Latest News:  
Beijing   Sunny/Overcast    9 / 1   City Forecast

People's Daily Online>>China Business

'Chinese backyard' of Italy about to go bust (3)

By Xu Tianran (Global Times)

10:46, November 23, 2011

Debt crisis and crackdown

However, with the aggravation of the debt crisis, the purchasing power of clients in Europe has declined significantly. Local authorities began raiding more workshops and garment companies, imposing heavy fines on those who violate regulations.

"Of course we have problems. Chinese kids of rich business owners drove fancy cars in town, most Chinese companies avoided tax and employed Chinese workers without working permits. But these problems have existed for a long time. It is the debt crisis that drove the local government to take more aggressive measures," Chen said.

On June 21, a total of 500 local police officers raided 70 Chinese-owned businesses and seized assets worth 25 million euros. More than 390 bank accounts, 183 vehicles and 76 properties were seized in the operation.

"Chinese companies operating in Prato and in Florence were accumulating large amounts of cash thanks to black market sales often using counterfeit goods and illegal labor," the police said in a statement.

Business owners sent their cash back to China through money transfer agencies in dozens or even hundreds of tranches of 1,999 euros each, under the legal limit per payment of 2,000 euros, according to the police.

It is estimated that between 2007 and 2009, 238 million euros of undeclared earnings were sent to China in this manner.

The security situation also worsened during the crisis. "A Spanish garment trader was robbed and seriously beaten up last month. Now no one dares to go out alone in the evening," Chen said, adding that there has been a particular high number of crimes this year. According to local Chinese press, the frequency of robberies and thefts had reached 10 a day at the beginning of November.

【1】 【2】 【3】 【4】

We Recommend


Related Reading

Leave your comment0 comments

  1. Name


Selections for you

  1. Est-Ouest Auction 2011 Autumn Sale to be held

  2. Children's folk music base founded

  3. Children experience new school bus

  4. Armed police bid farewell to retiring dogs

Most Popular


  1. Return to reason for real estate
  2. A reality check for Washington
  3. Improving education quality in rural areas
  4. Further healthcare reform
  5. Cyber cooperation needed
  6. Asia has no time for games with US
  7. Japanese drills should raise red flags for China
  8. Money culture pulls well-off teens into sex trade
  9. US scaremongering
  10. Asians no longer go under the knife to look 'white'

What's happening in China

Final shot as popular studio to shut down

  1. Macao residents hit jackpot with gov't subsidies
  2. China sets up emergency alert publishing system
  3. PLA establishes strategic planning department
  4. Schools offer lessons for a happy marriage
  5. Smaller units to supervise railways

PD Online Data

  1. The lion dance in Guangzhou
  2. The flower fair in Guangzhou
  3. Lion dances pay New Year calls in Guilin
  4. Jiangsu´s special New Year traditions
  5. Hakka traditions in Spring Festival