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Police crackdown on Chinese ‘sex capital’ Dongguan

kezgtree

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Yup..these older group will make their journey to sink land....younger one still serving up there...
 

ShaoKahn

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Prostitution clampdown on Dongguan may knock 50 billion yuan off its economy: analysts


City's long-term economic growth could be weakened by vice clampdown

PUBLISHED : Wednesday, 12 February, 2014, 11:09am
UPDATED : Wednesday, 12 February, 2014, 11:28am

Zhang Hong [email protected]

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People are taken away from a hotel in Dongguan during a police crackdown on prostitution. Photo: Reuters

The crackdown on the vice trade in Dongguan will cost the city at least 50 billion yuan (HK$63.5 million) in losses to related businesses, with the spillover effect sending a chilly wave to China’s macro economy, analysts said.

The action also reflects a warning from central government to provincial authorities to place anti-corruption and social moral standards at a higher priority after decades of economic development, they added.

Dongguan in Guangdong province has been in the media limelight after China Central Television aired a news report on its thriving sex industry on Saturday. Shortly afterwards the city mobilised more than 6,000 policemen to raid almost 2,000 entertainment venues, while crackdowns in other Guangdong cities were carried out simultaneously.

In a note to investors on Tuesday, Minsheng Securities’ senior economist Guan Qingyou estimated that around 50 billion yuan, or at least ten per cent of the city’s GDP, could be wiped out due to the crackdown.

“It’s very hard to make a concrete study on this underground sector. The sex industry relates directly or indirectly to many industries including hotels, condoms, restaurants, cosmetics, daily necessaries, travel and so on. Fifty billion yuan is a general estimate by many research institutes of the volume of Gongguan’s sex trade,” said Guan.

Lin Jiang, dean of the Finance and Taxation Department with Lingnan University and also a consultant to Dongguan city government, agreed with Guan’s estimate.

“It’s a reasonable estimate. But I am afraid the actual figure could be even higher,” said Lin.

“It will have a serious impact on the local economy. Dongguan has been trying to upgrade its industries for a long time, but that didn’t work well. The crackdown will also hurt investors’ confidence and weaken the city’s long-term economic growth.”

Guan also warned the crackdown on the sex industry might be echoed nationwide and have a negative impact on the nation’s economy.

“Some people might underestimate the resolution of the leadership. But we should take seriously the impact of the Dongguan case on the macro economy. We may see the impact in national economic statistics as early as March,” he said.

Analysts also believe the largest police crackdown seen in years on Dongguan’s sex business could have been a direct order from the central government. The South China Morning Post learned that some local officers got wind of the crackdown ahead of the Lunar New Year and secretly raised the alarm.

“Dongguan has seen many crackdowns in previous years, but none comparable to this one,” said Lin.

“Previously, many bosses would just keep their doors shut during sensitive periods and reopen their businesses afterwards. But this time they feel it might be very serious.

“The central government might be sending a signal to Guangdong province, the bellwether of the country’s economy. Besides economic growth, the province should also pay attention to its social moral standards and anti-corruption.”

But local observers doubted how far the campaign could spread. “With so many police officers and government officials deeply involved in the industry, I doubt the crackdown would get all of them,” said Xiao Gongjun, a previous researcher at Shenzhen University and currently a plant owner in Dongguan.


 

ShaoKahn

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'Corrupt' Guangdong police were secretly tipped off about latest high-profile raids, sources claim

Officers said to be involved in Guangdong vice industry were warned in advance about latest crackdown to cover their tracks, sources say

PUBLISHED : Wednesday, 12 February, 2014, 12:04am
UPDATED : Wednesday, 12 February, 2014, 10:13am

He Huifeng in Dongguan and Mimi Lau in Guangzhou

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The raids hit a swathe of businesses. Photo: Felix Wong

Police officers allegedly involved in the Dongguan sex industry were tipped off ahead of the latest high-profile crackdown against the trade, it has been claimed.

Now officers fear heads will roll with an investigation into the alleged corruption.

"A super typhoon is coming. I might need to flee myself if the investigation gets intense," said a senior Dongguan police officer.

The source said some officers were informed "ahead of the Lunar New Year" that an upcoming raid against the sex industry was imminent, warning those with vested interests to shut their businesses to dodge the raids.

"Often local police, city legislators and local triad leaders hold shares in local luxury hotels," the source said.

State media said the crackdown was prompted after CCTV on Sunday exposed the thriving underground sex trade as being protected by police. Local media reported Guangdong party secretary Hu Chunhua saying that he ordered a crackdown after viewing the CCTV reports.

Xinhua yesterday cited Dongguan city public security chief Yan Xiaokang warning that a special task unit involving the entire city police force would participate in a three-month campaign to eradicate the sex trade. Guangdong provincial public security chief Li Chunsheng also vowed to get to the bottom of police involvement in the trade.

But the South China Morning Post understands some local officers got wind of the crackdown ahead of the Lunar New Year and secretly raised the alarm.

Analysts also believe that the largest police crackdown seen in years on Dongguan's sex business could have been a direct order from Beijing.

While many Dongguan hotels remain in business, almost all saunas, massage parlours and karaoke bars have been shut since Sunday.

A female manager of Lion Hotel in Changping township told the South China Morning Post their nightclubs and sauna services had been suspended for redecoration. "The renovation will continue for weeks. We never offer illegal sexual services here."

But according to Steve Lam, a Hong Kong businessman who often visits Changping, the vice trade at the hotel had been busy until the Lunar New Year holiday. "Lion Hotel is very well-known among Hong Kong businessman. There were hundreds of prostitutes inside its saunas and karaoke bars each night."

Meanwhile, Dongguan taxi drivers are complaining their business has nosedived because of the crackdown. "There's no massive raid in Changping township but most pimps are lying low," said one cabbie, who claimed to have at least 10 contacts among local pimps and prostitutes. "I could get 20 to 50 yuan (HK$25 to HK$64) as a kickback for each guest I take to the hotels or the nightclubs," he said.

Another taxi driver said commissions could sometimes reach 200 yuan per customer.

So far, Dongguan has mobilised 6,500 police to raid almost 2,000 entertainment venues and arrested 162 people. Eight police officers had been suspended from duty, Xinhua reported.

Zhu Jianguo, a Shenzhen-based political scholar, said such a major raid would have had to have Beijing's backing, but he urged the government to think again before launching a blanket crackdown. "This will hurt the local economy and the tax revenue of local government."

Zhu urged the government to consider legalising the sex trade in order to better control it. "A crackdown is only going to send the business elsewhere."


 

ShaoKahn

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920 suspects snared in prostitution crackdown

China.org. February 13, 2014

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Police have swooped 18,372 entertainment venues, including 3,592 karaoke bars and 4,201 saunas in the province. [photo / sun0769.com]

A total of 920 suspects had been apprehended as of Wednesday in a crackdown on the illegal sex trade in south China's Guangdong Province, local authorities said.

Police have swooped 18,372 entertainment venues, including 3,592 karaoke bars and 4,201 saunas in the province. A total of 38 Karaoke bars and 156 saunas and massage parlors have been closed, said the provincial public security bureau.

The new crackdown came hours after a China Central Television (CCTV) program on Sunday revealed that a dozen hotels in Dongguan City were offering sex services.

 

ShaoKahn

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Generous Asset


8c89a590f56e1466647d22.jpg


A total of 920 suspects are apprehended as of Wednesday in a crackdown on the illegal sex trade in south China's Guangdong Province, local authorities said.
[photo / sun0769.com]


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