How easy to close a factory

This article describes the method used by factory owners in China, to close their operation. Owners, showing total lack of accountability to their employees, burn the books and flee. After reading this article, I can understand why major brand names, would rather heavily depend on contractors than run their own factories. Most recent example is DELL, which closed all of their assembly plants. In case of China, it seems fleeing is a best cure for industrialists from other countries like Taiwan, South Korea and province like Hongkong.

Some owners deserting factories
"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 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."

"Government statistics show that 67,000 factories of various sizes were shuttered in China in the first half of the year, said Cao Jianhai, an industrial economics researcher at the Chinese Academy of Social Sciences. By year's end, he said, more than 100,000 plants will have closed. "

What is Govt. doing?
"Others may flee not out of aversion to bureaucracy but because they want to get away with what cash they have left and not face angry suppliers, lenders, employees or regulators. Sometimes relatives and managers who help run operations flee too, and without anyone who can take responsibility, some factories have little choice but to shut down."

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