Chinese businesswoman’s arrest after demanding US$30 million in arrears from local government triggers investigation, public outcry
- Ma Yijiayi was contracted to build schools and museums, but an indebted government was unable to pay her, then detained her after she refused lowball offer
- Widely discussed case is seen highlighting threats to financial stability, economic growth and confidence as leadership readies for ‘two sessions’
The fervent backlash reverberated through social media after it was revealed that city-level authorities in an indebted Chinese province had arrested entrepreneur Ma Yijiayi for trying to recoup millions in back payments from the government.
Since 2016, her construction firm had been contracted by Liupanshui city in Guizhou province to build 10 local projects, including kindergartens, primary schools, museums, resorts and hotels, according to a report on Monday by the Beijing-based China Business Journal, which has since removed the story.
But reposts have continued to circulate online, outlining how the local government was alleged to have owed the businesswoman 220 million yuan (US$30.6 million) and had previously tried to settle all of the debt for 12 million yuan – merely 5.4 per cent of what her firm was said to be owed.
She refused their lowball offer and continued pressing for payment, taking the government to court, the news site reported. But the arrears remained unpaid, so she persisted.
