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Lai Changxing

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In thisChinese name,thefamily nameisLai.
Lai Changxing
Born(1958-09-15)September 15, 1958(age 65)
Jinjiang, Fujian,China
Occupation(s)Businessman, smuggler
Criminal chargeBribery
Criminal penaltyLife imprisonment
Spouse(divorced)
Children3
Chinese name
Traditional ChineseLại xương tinh
Simplified ChineseLại xương tinh

Lai Changxing(born September 15, 1958) is a former Chinese businessman and entrepreneur. He was the founder and Chairman of Yuanhua Group, based in theSpecial Economic ZoneofXiamen.He imported foreign products like cars, cigarettes and was responsible for one-sixth of the national oil imports at one time.[1]In the late 1990s, he was implicated in corruption scandals involving a large smuggling ring. By 1999, he was described by several media organizations as "China's most wanted fugitive".[2]

Lai evaded Chinese authorities and went to Canada, where he resided inVancouver,British Columbia. After a lengthy extradition battle and diplomatic negotiations, Canadian authorities deported him to China on July 22, 2011, upon promises that he would not be executed. He was sentenced tolife imprisonmentin 2012.[3]

Names[edit]

Despite his massive empire of wealth, Lai often smuggled goods into China and broke numerous trade laws.[4][5]He has also been referred as "the one who destroys lives" and "the corrupted smuggler".[6][7]

Early years[edit]

Lai was the eldest child born to Lai Yongdeng and Wang Zhuzhi inJinjiang, Fujianprovince in 1958, the year theGreat Leap Forwardbegan.[8][9]He was the first of eight children. He grew up in Shaocuo village (Thiêu thố thôn).[9]He would have starved to death during the Great China famine but luckily in Jinjiang and the rest ofsouth-eastern Fujianthe situation was greatly milder due to massive overseas Chinese donations and better leadership (unlike Tingzhou where about 100,000 Hakkas starved to death due to the Great Famine), his family also survived because his father converted a swamp into a personal vegetable field during the most difficult years.[9]Lai received almost no formal education as he spent one year in school before theCultural Revolutionshut his school down.[9]According to some sources Lai received three years of education.[10]

Career[edit]

Factory worker[edit]

When Lai was age 18,Mao Zedongdied and private businesses began re-appearing across China underDeng Xiaoping.Lai began working at a farming machinery factory before it shut down.[9]At age 20 Lai started a business making simple car parts. The business took off and turned into an empire. Within a decade he was the country's biggest private car importer.[1]

TV business[edit]

In 1990 Lai tried to run a business to import duty-free TVs, where he made thousands. Two government officials from Shaocuo demanded fees be paid to them.[11]When Lai refused, the two officials went to his house. At the time Lai was not home, but his sister was. The officials asked for business accounts, but she refused to give in.[11]She was then beaten severely and sent to the hospital. The officials then started a tax fraud case. Lai would win in court, but his revenge campaign against Communist officials would tie up his businesses.[11]Lai left Shaocuo and from this point on.[11]

Yuanhua group[edit]

In 1994 Lai founded Fairwell Group, also known as Yuanhua Group (Viễn hoa tập đoàn hữu hạn công tư), a prominent group of upstart companies that took advantage of the economic boom ofXiamen's status as aSpecial Economic Zone.[12]The group was heavily involved in the importing/smuggling of cars, cigarettes and oil. The group invested heavily in the city's real estate, hotels, clubs, roads and other infrastructure.[13]Lai also has his own brand of Fairwell cigarettes.[14]

In the mid-1990s Xiamen no longer regulated maximum building heights. Many rich businessmen tried to build the tallest skyscrapers. Lai built the 88-floor Yuanhua tower and the Yuanhua International Centre with a groundbreaking ceremony attended by 2000 guests. Each guest received a 3000-yuanred envelope.[15]Lai had prominent connections with the Fujian power elite; he was also a member of the Provincial Consultative Conference.

Lai was believed to be the mastermind of a US$10 billion scheme, during which he allegedly bribed high level officials in the administration of the Xiamen Special Economic Zone in order to smuggle luxury cars and entire tanker-loads of oil into the country. The smuggling ring fraudulently avoided US$3.6 billion in taxes and fees.[16]Chinese authorities do not comment on allegations that Lai's Yuanhua group was also a conduit for clandestine military shipments, such asSilkworm missiles.

In 1996Xiamen airport's terminal building 2, funded by Lai, was one of the biggest airport structure in the country.[17][18]In 1997 Xiamen's party secretary even made him an honorary citizen (Hạ môn vinh dự thị dân).[14][17]In 1998 he spent two million yuan to purchase afootballteam based inFoshan,Guangzhou and disbanded the team. He then moved all the players to Xiamen to create theXiamen Lanshi F.C.,and helped the team promote to theChinese Super League.[17]He even made his own film starring himself as a football star to improve his image.[14]

He built a 7-story building called the Red Mansion (Hồng lâu), named after the classical storyDream of a Red Mansion.[19]The mansion hired girls that were at least 5 ft 6 inches tall and have a highschool diploma at a salary of US$1000 a month. The girls were offered as sex mistresses and prostitutes to government officials.[19]

Lai had his ownForbidden Cityreplica (Viễn hoa ảnh thị thành) built with US$20 million that acts as a film production studio.[19][20][21]He typically drove sedans.[21][22]His armouredMercedeswas formerly owned by Party General SecretaryJiang Zemin.[23]

Relationships with officials and celebrities[edit]

According to Oliver August's bookInside the Red Mansion,Lai is known to be financially linked with high-ranking Chinese officials and celebrities. Some of the people includeJi Shengde,major general of military intelligence for thePeople's Liberation Army.[24]Ji Shengde is the son of formerSecretary General of the State CouncilJi Pengfei.

August alleged that singerDong Wenhuawas offered 10 million yuan if she took her clothes off for Lai, who was drunk at the time. She purportedly did take off her clothes for the money, and disappeared from public view. She returned to state-run television after 3 years.[24]Others include Li Jizhou (Lý kỷ chu), deputy minister for public security and Xu Ganlu (Hứa cam lộ), Immigration secretary.[24][25]Other corrupt officials include Liu Feng (Lưu phong),[26]Zhuang Rushun (Trang như thuận),[27]Lan Fu (Lam phủ),[28]Yang Qianxian (Dương tiền tuyến),[29]Shi Zhaobin (Thạch triệu bân),[29]Zhao Keming (Triệu khắc minh).[26]Some of them have already received sentences.

Lai's corruption of what was said to be literally hundreds of Chinese officials was effected through paying millions of dollars in bribes, by hosting lavish banquets and by giving jobs to relatives of local bureaucrats. He also blackmailed officials, through filming them with prostitutes arranged by him. Such arrangements enabled his companies to receive illicit import licenses and to avoid billions of dollars in import taxes. Lai's level of corruption of officials was to such a degree that corrupted naval officers allegedly ordered naval ships to escort freighters carrying Lai's contraband.[30]

According to August, thenChinese PremierZhu Rongji,known for his anti-corruption stand and for repeatedly saying publicly that Lai needs to be executed, met Lai twice.[24]In one meeting an offer was allegedly made for Lai to pay US$125 million in exchange foramnesty.[24]This, according to August, suggested the entire government knew of Lai's corruption for a long time.[24]Lai also purportedly gave money to Zhu Niuniu, son of former deputy commander of China's 31st army from Xiamen. Zhu constantly threatened to expose Lai's smuggling if he did not help him with his financial problem from gambling at theMacau casinos.[31]

Lai himself was said to be an apprentice to then General secretaryJiang Zemin.[24]At the height of Lai's corruption in the 1990s, the Fujian party chief wasJia Qinglin.[10]Xi Jinping,now CCP General Secretary, was the Fujian governor.[32]

Emigration[edit]

Hong Kong[edit]

Lai resided in Fujian province before he moved to Hong Kong in April 1991.[8]While he was in HK, the Chinese government pursued him. Lai explained to theHK Immigration Departmentthat he was in HK because he was a friend of Leung Kam-kwong, a senior immigration officer who later diedin honorduring theImmigration Tower firein 2000.[16][33][34]Leung apparently secretly warned Lai about the immigration department's pending warrant for his arrest. Leung also suggested Lai move to Canada to escape arrest.[16]However, the HK government later responded that the claim was totally baseless as the officer was already dead and could not defend himself against these accusations.[16]

Canada[edit]

Lai fled to Canada with his wife Zeng Mingna (Tằng minh na) and children in August 1999.[12]He paid US$1 million in cash for a house inSouth Granville RiseVancouver.[16]His kids went to private schools at a cost of US$4,000 a year and his wife opened a bank account with a deposit of US$1.5 million.[16]They were chauffeur-driven around in a US$90,000SUV.[16]In 1999 he was detained, apparently caught on a 28-day gambling spree atCasino NiagarainNiagara Falls.[16][30]Lai was a regular customer at the casino where at one time bought as much as US$3 million worth of chips. Canadian police noticed him and suspected he was involved in money laundering or loan-sharking.[16]Lai and his family then made a claim to stay in Canada as refugees.[30]

The family used aHKSAR passportto emigrate to Canada.[35][36][37] Following heavy pressure from Beijing, Lai'sHong Kong permanent residencyand HKSAR passport were revoked in 2002 by theHong Kong Government,saying that he obtained the status dishonestly.[38]

Following his detention in Canada, Lai was able to obtain his release, pending the hearing into his refugee claim, by placing himself under house arrest. He returned to the family's luxury condo inBurnaby,a suburb of Vancouver, and agreed to pay $80,000 per month to live under the guard of a private security firm.[30][39]Notwithstanding such arrangements, Lai was observed byRCMPofficers associating with known members of Asian smuggling gangs in Canada.[30]

Lai divorced his wife in June 2005.[10]In 2009 Lai was granted a working permit and worked at a Vancouver real-estate company as a consultant.[10]

Charges[edit]

Despite Lai's departure for Canada, the Chinese government continued to pursue charges against him, and sought hisextradition.In the same corruption case, one of the largest in modern Chinese history, many high-level municipal and provincial officials were sacked and a few were sentenced to life in prison or death. The complex smuggling case shifted the entire political scene in Fujian by the late 1990s. A special task force operation was created by the government to track down Lai on April 20, 1999, called "4.20" (420 chuyên án tổ ) with about 1200 investigators.[40][41]

Lai denied criminal wrongdoing, and stated that the allegations were politically motivated. Others likePierre Lemieuxdefended Lai, saying he is only a criminal because of China's communist economic system and that with a free market, there would be no need for smugglers like Lai.[42]Chinesewebsites could write about Lai as long as he was depicted as evil.[16]

One of Lai's attorneys,WinnipeglawyerDavid Matas,said that it was doubtful Lai could ever get a fair trial in China, given the extent of the Communist Party's influence in the opaque judicial system. Matas has filed for an assessment of whether Lai's family are at risk if they are returned to China. As long as immigration officials are considering this request, he says, they may not be removed from Canada.

Nevertheless, Lai has repeatedly been denied political refugee status in Canada, for example by a ruling in September 2005 by the Supreme Court inOttawa,Ontario. This affirmed the decision of theFederal Court of Appeal,which in April had refused to hear Lai's appeal of the June 2002 Refugee Board decision, on the grounds that Lai and his wife failed to meet the standards to be designated as refugees.

Canada does not have the death penalty and is prohibited from deporting accused criminals to countries where they will face capital punishment.[30]China claimed that he would not be executed if extradited from Canada. Canadian courts did not believe this guarantee, due to certain CPC bias in any trial and as 14 others involved in the complex Xiamen racket have already been executed.Svend Robinson,thenNew Democratic Partymember of parliament forBurnaby-Douglas,also noted that Lai's brother died in a Fujian labour-camp after receiving a lesser sentence. The likelihood of ade factodeath sentence remained an obstacle to his deportation.

On February 3, 2009, theCanadian Governmentgranted Lai a work permit. Canadian officials acknowledged that Lai did not have access to the vast fortune they thought he had upon arrival in Canada back in 1999. Lai has said his legal and living expenses were being funded by friends, whom he has declined to identify, saying they could be in danger if the Chinese government knew their names.[43]

On July 8, 2011,John Baird,the Minister of Foreign Affairs of Canada,said that, the extradition of Lai must be conducted using Canadian laws. In early stages, Lai's Refugee Application was refused, with the possibility of extradition to China.

Extradition[edit]

Lai's corruption is known to have reached the top levels of the Chinese government.[44]He has publicly declared in the past that if he returned to China: "many high government officials will not be able to sleep. Incidents will happen."[45][46]In relation to the case, 14 people have already been executed, about 300 provincial officials have already been put on trial.[47]Since 2002 Beijing sentMSS agentsto follow him wherever he went.[47]

On July 22, 2011, Lai Changxing was extradited to China. He was escorted toVancouver International Airportand boardedAir Canadaflight 29 (AC 29) bound for Beijing. He was later transferred to Chinese custody on July 23, 2011, and signed anarrest warrantissued for his arrest upon his arrival in Beijing.[48]Spokesman of theChinese ministry of foreign affairshas expressed satisfaction concerning this decision, referring to Lai as responsible for the "biggest economic crime in the history of the People's Republic of China."[49]

Sentence[edit]

On May 18, 2012, Lai Changxing was sentenced to life imprisonment on charges of smuggling and bribery by the Intermediate People's Court in Xiamen. In addition, all of his property was confiscated.[50]

References[edit]

  1. ^abAugust, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 17–19.
  2. ^August, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 66.
  3. ^"China jails smuggler Lai Changxing for life".BBC News.May 18, 2012.
  4. ^"China jails smuggling kingpin Lai for life".Toronto Sun.Reuters. May 17, 2012.RetrievedJuly 6,2012.
  5. ^Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 125.
  6. ^August, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 160.
  7. ^August, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 3.
  8. ^ab"Tử đích tử đào đích đào lại xương tinh lão gia cực độ phá lạc thôn dân húy mạc như thâm".Iask.ca. Archived fromthe originalon March 20, 2012.RetrievedJuly 25,2011.
  9. ^abcdeAugust, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 99.
  10. ^abcdSouth China Morning Post.Epic career of Lai Changxing. July 23, 2011
  11. ^abcdAugust, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 103–104.
  12. ^ab"Viễn hoa án lại xương tinh tối khoái hậu thiên khiển phản".nextmedia.com.RetrievedJuly 25,2011.
  13. ^"Lại xương tinh hà dĩ lại tại gia nã đại giá ma đa niên".chinareviewnews.com. July 24, 2011.RetrievedJuly 25,2011.
  14. ^abcatv (July 22, 2011)."Lại xương tinh dĩ nan dân thân phân gia nã đại đào tị tội trách 12 niên".atv. Archived fromthe originalon October 3, 2011.RetrievedJuly 25,2011.
  15. ^August, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 60.
  16. ^abcdefghijAugust, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 156–158.
  17. ^abcAugust, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 69.
  18. ^"Xiamen Airport Development Co., Ltd".Xiac.com.cn. Archived fromthe originalon September 1, 2011.RetrievedJuly 25,2011.
  19. ^abcAugust, Oliver (July 1, 2007)."The most corrupt man in China".TIME.London.RetrievedJuly 25,2011.
  20. ^"Hạ môn thiên an môn tá lại xương tinh chiêu khách".Apple Daily.January 23, 2007.RetrievedJuly 25,2011.
  21. ^abAugust, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 152.
  22. ^August, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 189.
  23. ^Beech, Hannah (October 14, 2002)."Smuggler's Blues".TIME.Archived fromthe originalon July 22, 2011.RetrievedJuly 25,2011.
  24. ^abcdefgAugust, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 171 – 178.
  25. ^"Tân báo võng trạm".Hkdailynews.com.hk. Archived fromthe originalon October 6, 2011.RetrievedJuly 25,2011.
  26. ^ab"Hạ môn thị ủy nguyên phó thư ký lưu phong".Big5.cri.cn. November 15, 2004.RetrievedJanuary 23,2012.
  27. ^"Viễn hoa án yếu phạm phúc kiến nguyên phó công an thính trường trang như thuận cải phán tử hoãn".Big5.huaxia.com. December 24, 2003. Archived fromthe originalon September 27, 2011.RetrievedJuly 25,2011.
  28. ^"Lại xương tinh khiển phản án sở hữu pháp luật trình tự kết thúc".News.sina.com.hk. Archived fromthe originalon July 17, 2012.RetrievedJuly 25,2011.
  29. ^ab"Lại xương tinh xưng năng tiếp thụ khiển phản thừa nhận thâu thuế lậu thuế".News.jxnews.com.cn. August 6, 2009.RetrievedJuly 25,2011.
  30. ^abcdefDiane Francis,"Lawyers, lobbies corrupt meaning of refugee policy".Financial Post,March 17, 2001: D3.
  31. ^August, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 186.
  32. ^"Viễn hoa án chủ hiềm lại xương tinh tối khoái kim khiển đại lục".Yahoo Taiwan. July 18, 2011. Archived fromthe originalon July 29, 2011.RetrievedJuly 25,2011.
  33. ^"Immigration Officer Dies Nine Days After Hong Kong Arson Attack".People's Daily.August 13, 2000.RetrievedJuly 25,2011.
  34. ^"12 Aug 2000 In Memory of Mr Leung Kam-kwong".CSB. Archived fromthe originalon September 27, 2011.RetrievedJuly 25,2011.
  35. ^"Gia chính phủ bị chỉ phi pháp đãi bộ lại xương tinh".BBC News.December 8, 2000.
  36. ^"Tân sinh võng".Xinsheng.net.RetrievedJuly 25,2011.
  37. ^"Lại xương tinh nghĩ phúc hạch cảng nhân thân phân".Archived fromthe originalon September 29, 2007.RetrievedJuly 19,2007.
  38. ^http://news.sina.com.hk/cgi-bin/news/show_news.cgi?date=May20, 2006&type=china&ct=china&id=1975157[permanent dead link]
  39. ^August, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 203.
  40. ^August, Oliver. [2007] (2007) Inside the Red Mansion: On the trail of China's most wanted man. Houghton Mifflin company.ISBN978-0-618-71498-8.kindle ebook pg 187.
  41. ^singtao.ca (August 31, 2009)."Lại xương tinh nhạc phụ mẫu phủ nhận nữ nhi hoạch tặng tài sản thê nữ tiền niên phản hoa huynh đệ hiện dĩ hình mãn xuất ngục".News.singtao.ca.RetrievedJuly 25,2011.
  42. ^"In Defence of Lai Changxing, by Pierre Lemieux".Pierrelemieux.org. Archived fromthe originalon July 27, 2011.RetrievedJuly 25,2011.
  43. ^"Accused Chinese smuggler gets Canada work permit".Reuters.February 5, 2009.
  44. ^South China morning post. Nov 29, 2000. Lack of transfer agreement leaves SAR in 'difficult situation'.
  45. ^"Cảng môi: Giang trạch dân bệnh nguy lại xương tinh thành liễu trung cộng nội bộ quyền lực đấu tranh đích kỳ tử".News.backchina.com. July 13, 2011. Archived fromthe originalon July 17, 2011.RetrievedJuly 17,2011.
  46. ^Cường từ hữu lý: Ngận đa cao quan thụy bất trứ(in Chinese). Orientaldaily.on.cc.RetrievedJuly 17,2011.
  47. ^abSouth China morning post. June 23, 2002. Canadian decision on fugitive welcomed.
  48. ^Sino-Canadian relations: ‘Strategic Partnership’ II,Wenran Jiang,TheStar.com,July 23, 2011
  49. ^Lại xương tinh bị khiển tống hồi trung quốc, trung quốc chính phủ biểu kỳ hoan nghênh – Lai Changxing is repatriated back to China, the Chinese government is expressing content(bilingual),Thinking Chinese,July 23, 2011
  50. ^"Lại xương tinh nhất thẩm bị phán vô kỳ đồ hình tẩu tư 273 ức".Xinhua.Archived fromthe originalon May 24, 2012.

External links[edit]

  • Ashort filmabout the making of the bookInside the Red Mansionby Oliver August.
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