Chinese authorities are now addicted to traffic fines
What that tells you about the country’s economic woes
Ma Yijiayi was locked up in November. She did not stand in a square demanding political rights. Nor did she steal from state coffers. Instead, her crime was to ask a deadbeat debtor to pay her back. The local government in Liupanshui, a city in the province of Guizhou, owes Ms Ma, who is a contractor, 220m yuan ($30m) for building schools. Officials had offered her a mere 12m yuan. She refused.
Chinese citizens and business owners are increasingly victims of unscrupulous attempts by local governments to shore up their finances. An investigation in January found that almost all the traffic fines issued last year by police officers in Hebei province rested on bogus claims. In a neighbouring region, truck drivers allege that officials are putting their fingers on the scale, issuing excessive penalties for overweight loads. Jacked-up parking fees and stricter inspection of restaurants have also become municipal money-spinners.
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This article appeared in the Finance & economics section of the print edition under the headline "Put the brakes on"
Finance & economics April 27th 2024
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