Lai Changxing

Lai Changxing (simplified Chinese: 赖昌星; traditional Chinese: 賴昌星; pinyin: Lài Chāngxīng) (born 1958) is a Chinese businessman and entrepreneur from Jinjiang, Fujian, People's Republic of China. Lai was the head of the lucrative Yuanhua Group in the Special Economic Zone of Xiamen, which became implicated in a large smuggling and corruption scandal in the late 1990s. He has been described by several media organizations as "China's most wanted fugitive", while others maintained that he is the victim of a government witchhunt and that he is a "defender of the free market". He resided in Vancouver, Canada until July 22, 2011, when Canadian authorities extradited him to China.

Yuanhua Group

Lai resided in Fujian province before he moved to Hong Kong in 1991. In 1994 Lai founded Yuanhua Group, a prominent group of upstart companies that took advantage of the economic boom of Xiamen's status as a Special Economic Zone. The group was heavily involved in the city's real estate, clubs, and owned the 88-story Yuanhua Tower and the Yuanhua International Centre. 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. Chinese authorities do not comment on allegations that Lai's Yuanhua group was also a conduit for clandestine military shipments, such as Silkworm missiles.

Canada

He fled to Canada in 1999 with his wife Zeng Mingna (曾明娜) and their children, using a HKSAR passport Following heavy pressure from Beijing, Lai's Hong Kong permanent residency and HKSAR passport were revoked in 2002 by the Hong Kong Government, saying that he obtained the status dishonestly.

The Chinese government has refused to drop the charges laid against him, and seeks his extradition. 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 in the late 1990s.

Lai has denied criminal wrongdoing, and stated that the allegations are politically motivated. Others like Pierre Lemieux defended 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.

Lai's attorney, Winnipeg lawyer David Matas, says it is doubtful Lai could ever get a fair trial in China, given the extent of communist party influence in the opaque judicial system. Former Chinese Premier Zhu Rongji, architect of the crackdown on Xiamen-centred smuggling and taking a very tough stance on corruption, has publicly stated that Lai deserves not just one but several deaths. Matas has now 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, most recently in September 2005 by the Supreme Court in Ottawa. This seconded the Federal Court of Appeal, which in April had refused to hear Lai's appeal of the 2002 June Refugee Board decision, on the grounds that Lai and Zeng 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. 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, then New Democratic Party member of parliament for Burnaby-Douglas, also noted that Lai's brother died in a Fujian labour-camp after receiving a lesser sentence. The likelihood of a de facto death sentence remains an obstacle to his deportation.

On February 3, 2009, the Canadian Government granted Lai a work permit. Canadian officials have acknowledged that Lai does 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 are being funded by friends, whom he has declined to identify, saying they could be in danger if the Chinese government knew their names.

On July 8, 2011, John Baird, the Minister of Foreign Affairs of Canada, said that, the extradition of Lai must accord to the program of Canadian Laws independently. In early time, Lai's Refugee Application was refused. He will possibly be extradited to China. The date of extradition is decided on July 25th tentatively, unless his application of suspending the extradition succeed.

Extradition

On July 22, 2011, Lai Changxing was officially extradited to China. He was escorted to Vancouver International Airport and boarded Air Canada flight 29 for Beijing. He was officially handed over to the Chinese Police on July 23, 2011, and signed a warrant issued for his arrest upon his arrival in Beijing. This event could remove an obstacle in Sino-Canadian relations, as Canadian minister of foreign affairs John Baird is adopting a proactive approach in promoting stronger ties between both nations. Spokesman of the Chinese ministry of foreign affairs has expressed satisfaction of this decision, referring to Lai as responsible for the 'biggest economical crime' in the history of the People's Republic of China.

Further reading

The only book in a western language published on the Lai Changxing affair is by the former Beijing bureau chief of The Times newspaper, Oliver August.

• August, Oliver (2007). Inside the Red Mansion: On the Trail of China's Most Wanted Man. John Murray. ISBN 0618714987. {{cite book}}: Cite has empty unknown parameter: |coauthors= (help)
• A short film about the making of the book Inside the Red Mansion by Oliver August.

See also

• The World's 10 Most Wanted

External links

• The most corrupt man in China, Oliver August, The Sunday Times, July 1, 2007
• Smuggler's Blues Hannah Beech, Time Asia
• Canada again rejects refugee status for Lai Xinhua, April 15, 2005.
• In Defence of Lai Changxing Pierre Lemieux, November 29, 2000.
• Chinese in Vancouver - Updated blog coverage