Any foreign company entering the Chinese market is required to follow the laws of this country, says Gan Guoping, the SAIC deputydirector at a press conference here. Pyramid sales, also called direct sales overseas, which have been banned in many countries, have however turned into swindling activities here in China.

The companies conducting pyramid sales usually tempt customers to become their part-time salespeople with promises of high profits but what they sell are mostly fake or smuggled products, says Gan.

Customers are always asked to buy the products at the price much higher than usual as a passport to enter the sales crew, he adds. A number of customers have been cheated, which is posing a threat to social order and stability.

China's fight against pyramid sales does not target any specific country or company but cracks down on illegal activities and protects the interests of legitimate businesses, says Li Rongrong, minister in charge of the State Economic and Trade Commission.

According to Li, so far this year, China has destroyed 2,559 illegal pyramid sales dens and has tracked down 170,000 people whoare involved.

(People's Daily December 12, 2001)