- CNTV English - CCTV News

Impact of pyramid scheme crackdown on local economy

08-22-2011 09:28 BJT

Watch Video

Play Video

We continue our reports on so called "multi-level marketing", the Chinese version of the Ponzi scheme or pyramid selling. The recent crackdown on the crime chains has significantly affected the city of Laibin as it contributes largely to its overall economy.

It's almost impossible to count how many people are involved in the "multi-level marketing" ponzi scheme, as the business is mainly carried out underground.

The large number of scheme participants has made a large contribution to Laibin's economy. On the city's Changmei road, there used to be thousands of people gathered with false dreams of becoming rich over night. But now, it looks empty.

A vendor in Laibin city, said, "Business is heavily affected now. Two thirds of my business is gone." "My goods can't be sold within three days. I used to carry new stock every day, now not even every three days. You see my bananas have gone bad."

Local residents however appear unconcerned. A local resident, said, "I wouldn't say I really care about it. Nor do my family."

The indifference from the public shows the dilemma that Laibin city face after the crackdown on the Ponzi Scheme chain. When the economy depends on such illegal business, the price will eventually have to be paid. Laibin city has just announced that the residents will be banned from providing accommodation and venues for "multi-level marketing" participants. City officials say it's the only choice for the city's better future.


Editor:Zhang Dan |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program