Meaning:

“逃” means “to escape,” “废” means “waste,” and “债” means “debts.” This term refers to a breach of contract, where the person or company with the ability to repay their debts chooses not to. With recent cases of high-profile companies involved in defaults, the Chinese authorities have ordered investigations into and severe punishment for those vicious debt defaulters.

Example:

A: 听说你弟弟失业了？

Tīngshuō nǐ dìdi shīyè le？

Is it true that your younger brother lost his job?

B: 是啊，他们老板把资产转移到海外，然后还不起银行债务，公司进入破产程序了。

Shì a，tāmen lǎobǎn bǎ zīchǎn zhuǎnyí dào hǎiwài，ránhòu huánbuqǐ yínháng zhàiwù，gōngsī jìnrù pòchǎn chéngxù le。

Yes. His boss had transferred his assets overseas and failed to repay bank loans. Now the company has entered the bankruptcy proceedings.

A: 这不是逃废债吗？

Zhè búshì táofèizhài ma？

Isn’t that a typical case of illegal avoidance of debts?