Disgraced actress Zheng Shuang sued by production firm for owing US$12.5 million, faces 3-year jail if assets concealed
- Actress rises to stardom in many roles, youngest TV award nominee
- Rocked by surrogacy, tax evasion scandals, declared bankrupt
A former top actress in China has been declared bankrupt because she cannot afford to pay the production companies compensation they are suing her for.
The revelation has fuelled allegations that Zheng Shuang transferred assets overseas, and experts have warned of the serious legal consequences – such as a possible three-year jail term – if that is the case.
Zheng was once a leading actress on the mainland, rising to stardom with her role as Chu Yuxun in the 2009-2010 television series Meteor Shower.
She also became the youngest nominee for Best Actress at the China TV Golden Eagle Award in 2010.
However, her career took a dramatic turn for the worst in 2021 due to scandals over allegations of surrogacy and tax evasion.
In 2021, her ex-partner, producer Zhang Heng, accused Zheng of abandoning two children born through surrogacy in the United States.
She also faced accusations of having huge earnings without paying tax.
Investigations revealed that between 2019 and 2020 Zheng failed to declare a personal income of 191 million yuan (US$26 million), thereby evading taxes worth 45.27 million yuan.
She was also revealed to have received a salary of 156.25 million yuan for acting in A Chinese Ghost Story, at a daily rate of about two million yuan (US$280,000).
Following the scandals and the public backlash, the airing of Jade Lover, a television series starring Zheng in a lead role, was banned so the production company could sue her for compensation.
On December 16, 2021, the Shanghai Songjiang District People’s Court ordered Zheng to return 30.5 million yuan in fees and 60 million yuan in compensation for the company’s economic losses.
Despite Zheng’s appeal, the court upheld its original ruling in the second judgment in July 2023.
On December 7, 2023, the actress was subject to a compulsory payment for the sum of 90.5 million yuan (US$12.5 million) to the company, along with restrictions on her spending and the freezing of her equity.
Another contract dispute between Zheng and the production company of a different drama she starred in, Jue Mi Zhe, resulted in her studios paying out 128 million yuan in 2023.
On April 1, legal documents revealed by Tianyancha, a data company providing Chinese enterprise information, indicated that Zheng was bankrupt, with no assets available to make legal payments.
News of Zheng’s bankruptcy attracted about 400 million views and sparked more than 30,000 comments on Weibo at the time of writing, with many speculating about asset transfers.
“This is 100 per cent transferred assets. If the investigation proves true, a severe punishment is necessary,” one person alleged.
“She has already transferred assets and never planned to repay the money,” alleged another person.
Zhao Liangshan, a lawyer from Shaanxi Hengda Law Firm, said if it is verified that Zheng Shuang has the ability to repay but refuses to do so, and has deliberately hidden or transferred assets, then she may have violated Article 313 of the Criminal Law.
It stipulates that refusing to execute judgments or comply with rulings can result in a sentence of up to three years in prison, detention, or a fine.
