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BANKRUPTCY IN CHINA….China’s manufacturing decline has accelerated recently due to the global financial meltdown, but apparently China’s provisions for corporate bankruptcy aren’t quite as smooth as one might hope:

First, Tao Shoulong burned his company’s financial books. He then sold his private golf club memberships and disposed of his Mercedes S-600 sedan.

And then he was gone. And just like that, China’s biggest textile dye operation — with four factories, a campus the size of 31 football fields, 4,000 workers and debts of at least $200 million — was history.

….In recent weeks, there have been many fires, increasingly large-scale. In Zhejiang province, south of Shanghai, Ye [Hang] counted at least six major bankruptcies, including Jianglong; Feiyue Group, China’s biggest sewing machine maker; and Zhejiang Yixin Pharmaceutical Co., among the largest in that industry.

“Of these six, one [owner] committed suicide, one was detained by police, and the remaining four all escaped,” he said. “I can imagine that in the future, there would be more such cases as a result of the chain reaction.”

I don’t especially want anyone committing suicide, but I confess that the thought of Wall Street executives in failed banks either being detained by the police or going to ground and hiding in terror holds a certain appeal. Is there any chance that the U.S. could import the Chinese method temporarily just for the financial industry?

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Fact:

In-depth journalism that investigates the powerful takes real money and is so damn important right now.But it doesn’t take a Mother Jones investigation to know that billionaires and corporations will never fund the type of reporting (like they do politicians) we do that exists to help bring about change. Instead, our mission-driven journalism is made possible by people power, and has been for 46 years now since our founding as a non-profit.

In “TITLE TK” Monica Bauerlein writes about the perilous moment we’re in, and why it’s so important that we raise $325,000 by the time November’s midterms are decided so we can be ready to throw everything we have at the big issues facing the nation no matter what happens. Please help MoJo’s people-powered journalism with a donation today.

$400,000 to go!

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