Is Guilin's immigrant economy a national policy?

The immigrant economy in Guilin is a pyramid scheme, which is not supported by the state and is illegal. It's already been reported in the news.

Article 224 of the Criminal Law: Whoever organizes and leads pyramid selling activities, in the name of selling goods and providing services, requires participants to obtain the qualification to join by paying fees or purchasing goods and services, forms a hierarchy in a certain order, directly or indirectly lures or coerces participants to continue to develop others to participate, defrauds property and disrupts social and economic order, and is also fined; If the circumstances are serious, he shall be sentenced to fixed-term imprisonment of not less than five years and fined.