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August 8, 2012

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Most stores close after crackdown rumors

MOST stores on the streets of Shenyang City were closed by their owners who feared hefty fines after a widespread rumor that a police crackdown on counterfeited goods was targeting them.

The city government in Shenyang, capital of Liaoning Province in northeastern China, yesterday issued an announcement to refute the rumor. It said the city had not launched any crackdown or planned to punish vendors with hefty fines, and it encouraged shop owners to reopen.

The announcement was issued after many residents in Shenyang complained online that their lives were seriously disturbed as most stores were closed to avoid the crackdown during the past three weeks, reported Nanfang Daily.

"It's like an empty city!" a barber who gave his name as Abu told the newspaper. "I just went to a big supermarket and saw many people panic-buying water and instant noodles, just like refugees."

Some residents said online that they can't even find an open grocery shop to purchase rice or a restaurant to have dinner or a barber shop to have a haircut.

"Finally I found a barber shop still open in a shady street to have my hair cut late at night. They opened the door for me like an underground organization," a commenter said on Weibo.

The newspaper said in some areas, over 95 percent of the shops were closed.

Some vendors told reporters that they would rather suffer some loss of sales than be checked by law enforcement teams. They said they heard rumors that the teams would punish them with hefty fines and even detain them if they found anything violating the laws.

A shop owner surnamed Tan told the newspaper he heard a rumor in July saying law enforcement would check shops for counterfeit goods and many stores had been fined. Tan said his shop had been closed for seven days and he had lost tens of thousands of yuan in business, but still he didn't plan to reopen.

Another vendor said they had to pay over 10,000 yuan (US$1570) in fines, and shop owners were running the risk of having trouble with police.

"For example, one of your healthy employees was found to have not gone through an annual health check, then the boss would be immediately taken away by police and he had to pay certain amount of money before he can be set free," the vendor told the newspaper.

The local industrial and commercial bureau denied launching an anti-counterfeit goods campaign, but some shop managers told the newspaper surprise checks were conducted by both police and the market watchdog in July.




 

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