Debt default by wealth flaunter more than just celebrity gossip

WANG SICONG, the only son of Chinese billionaire and Wanda Group chairman Wang Jianlin, has been prohibited from high consumption because he failed to comply with a court ruling. China Daily writer Wang Yiqing comments:

Wang Sicong was named by Beijing No 2 Intermediate People's Court earlier this month as personally liable in a financial dispute involving about 151 million yuan ($21.6 million) in debts. He was initially a person on whom a court order had been enforced and so did not face travel or spending restrictions. But the court has now frozen his assets and imposed a consumption restriction order on him, which means he is identified as a defaulter.

According to the court, Wang's assets including properties, vehicles and bank deposits have been seized and he is subject to the high consumption restriction order because he failed to fulfill the payment obligation required by the court.

It means all nonessential consumption in his daily life is prohibited until his debt is paid. For instance, he cannot purchase a first class high speed train ticket or spend in high consumption places such as high-end hotels or buy real estate. The meaning of this news is far beyond celebrity gossip as it involves the rule of law and the spirit of contracts.

Although Wang is a wealthy internet celebrity in the business world, he is only a simple player, who must abide by the markets' rules and fulfill a contract the same as anyone else.

Business disputes are not uncommon, and it is also a common practice to resort to legal means to solve the disputes. But a qualified market player should not only actively safeguard his or her own interests by legal means, but also abide by the rulings of the court.

The high consumption restriction and the order to freeze Wang's assets are legal ways to ensure the enforcement of the court's ruling and safeguard a creditor's legal rights and interests.