Esoteric fines pile up as China’s provinces hunt for revenue | Bloomberg News

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Esoteric fines pile up as China’s provinces hunt for revenue | Bloomberg News
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China’s indebted local governments are increasingly imposing controversial fines on residents in a bid to generate revenue, stoking anger among social media users.

A Shanghai restaurateur was fined 5,000 yuan this month for serving shredded cucumber without a licence, prompting outrage on China’s Twitter-like Weibo. In a post viewed 9.5 million times, one user wrote: “If they wanna fine you, even adding vinegar could be wrong.”

These high-profile scandals represent a broader trend of local governments using fines to bolster their coffers. A State Council inspection last year found that in the wake of the pandemic and other economic difficulties, local government penalties had become stricter and more severe, according to an article in state media.

China’s local governments have suffered the dual blows of the pandemic and a property crackdown from Beijing in recent years, leaving them with too little income to spend on salaries and building roads, while at the same time paying their debt bills. Goldman Sachs Group Inc. estimates China’s total government debt is about $23 trillion, a figure that includes the hidden borrowing of thousands of financing companies set up by provinces and cities.

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