Lawrence Person's BattleSwarm Blog 6/13/2022
Here’s another entry for the “China’s economy is smoke and mirrors all the way down” file. Remember the previous story on the mountains of unused bikes for failed Chinese bike-sharing startups? Well, evidently the exact same thing happened with “green” cars:
The mechanics of the scam:
1. First they put together a down payment, order a batch of vehicles, and license them at a vehicle administration office.
2. Then they contact government officials, present the vehicles in their hands and apply for permission on the grounds that they are operating an online car sharing business.
3.The third step is to get the government’s permission, then go to the bank to get a loan.
4.The fourth step is to find a financer and present the vehicles and the government papers to secure some venture capital from the financer.
5. Last mortgage the vehicles to some smaller financial institutions to squeeze out their final value.
After all these steps are completed, the scammers disappear. The bank, the financer and the small financial institution are left with triangular disputes while the vehicles rot somewhere in the wilderness.
More:
https://www.battleswarmblog.com/?p=51659https://www.youtube.com/watch?v=JKiITsxoP4Y&t=1s
