China to step up crackdown on pyramid schemes

BEIJING - China will reinforce its crackdown on pyramid schemes with focused efforts, according to China's top market regulator.

In the fight against pyramid schemes this year, the government will prioritize efforts in 11 cities, including Changsha, Nanchang, Nanjing, Nanning and Wuhan, according to a guideline released by the State Administration for Market Regulation.

The guideline requested work be carried out to eliminate online pyramid schemes, combining online monitoring with solid evidence offline.

The country will encourage online communities and platforms to be free of pyramid schemes and strengthen online supervision, it said.

The guideline also called for improved communication among different departments involved in the government-led crackdown on pyramid schemes.

Despite progress in recent years, pyramid schemes, especially those online, remain an issue in China, causing massive financial losses, twisting the values of participants, and harming the social credit system.