China: Loan Shark Activities, Police Protection and Corruption, and support, including mental health, to female returnee victims of trafficking

Asylos has published another open access research report covering the situation in China, regarding loan shark activities, police protection and corruption, and support, including mental health, to female returnee victims of trafficking. This research can be used as a tool to help identify relevant Country of Origin Information.

This Asylos report examines several interconnected issues affecting vulnerable populations in China, with particular focus on illegal lending practices, law enforcement responses, and support systems for trafficking victims. The research documents widespread loan shark activities involving millions of cases, with lenders employing increasingly sophisticated tactics including “naked loans” targeting young women, “recipe loans” designed to trap property owners, and digital platforms charging interest rates up to 6,000% annually. Sources indicate that debt collectors frequently use psychological intimidation, harassment, and violence to extract payments, while police intervention remains inconsistent, often occurring only when physical injury or death results. According to sources, despite large-scale crackdowns arresting tens of thousands of suspects, over 51 million cases associated with loan sharking were identified between 2019-2021, indicating the scale of the problem.

The report also addresses human trafficking in China, particularly affecting women and children, with an estimated 5.8 million people living in modern slavery conditions. One source analysing judicial cases reveals that 20% of trafficked women within the cases examined had intellectual or psychosocial disabilities, with victims primarily coming from rural areas. While China has adopted national action plans and cooperates with international organisations like the IOM, sources suggest significant gaps remain in victim identification and support services. The report identifies substantial barriers to accessing mental health and reintegration support for returnees, including the restrictive hukou household registration system that limits access to social services, ongoing social stigma against trafficking victims, and regulatory constraints on NGO activities. Sources indicate that despite the existence of shelters, legal aid services, and psychological support hotlines, service provision remains inconsistent and inadequately documented by authorities.

This research can be used as a tool to help identify relevant Country of Origin Information. It was produced in response to information needs of people seeking asylum, and is part of an initiative to publish, in open access, a selection of our bespoke research. In making this report widely accessible, we hope that the report can contribute to fair and evidence-based decision-making in as many asylum cases as possible.

Do you have any comments or feedback on our research report?
We would love to hear it! Email us at info@asylos.org 

Photo credit: FangXiaNuo