What are the consequences for abandoning a business in China?

Many business owners may find it difficult to navigate the numerous regulations regarding de-registration and liquidation of a business. However, simply abandoning a business is not an advisable course of action as it can leave valuable assets and employees stranded and unrecoverable. Furthermore, it may severely impair one’s ability to conduct business in China in the future. The Administration for Industry and Commerce (AIC) is known to add businesses and individuals to its Directory of Enterprises with Serious Non-compliance otherwise known as its “Blacklist” which becomes a large barrier for re-entering the Chinese market.