Pyramid schemes cause huge social harm in China

THE authorities call them “business cults”. Tens of millions of people are ensnared in these pyramid schemes that use cult-like techniques to brainwash their targets and bilk them out of their money. In July 2017 victims of one such fraud held a rally in central Beijing (pictured), an extremely unusual occurrence. The police quickly dispersed it and the government, in panic, declared a three-month campaign against the scams. Hundreds of them were closed down and thousands of people arrested. But the cults are adopting new guises. The problem may still be growing.

Li Xu shows how they work and why they are so hard to fight. Mr Li was 34 when his family got him a job at Tianshi, which claimed to be a company selling cosmetics and health products in the coastal province of Jiangsu. He paid 2,800 yuan ($340) as a “joining fee” and rose quickly through the ranks. He recruited others, including his younger sister. “They gave you a vision of wealth and success,” he says. “It does wonders for...Continue reading

Source: China http://ift.tt/2rXuE4x

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