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China Bans Direct SalesThe Chinese government issued a circular Monday banning direct sales, which are staging a comeback in the country.The State Administration for Industry And Commerce asked local law enforcers to crack down on various forms of direct sales, including the "Network Double Earn", "Allied Chain", "Motivating Sale" and "Rolling Sale". The circular says that the operation will especially target profiteers who prey on gullible people. Units or persons who shift responsibility or dare to confront the government will be punished, the circular warns. Direct sales were introduced into China in the early 1990s by some foreign companies, and soon became popular among people who wanted to get rich overnight. The Chinese government eyes direct sales as illegal business operations because they have created chaos in the market and cheated people.
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