The rise and fall of China's most wanted man

We profile Lai Changxing, the corrupt tycoon who built a $10bn empire in China - then fled in a speedboat. He's now living in Canada, but will he be sent back to get his comeuppance?

A founding member of China's new class of oligarchs, Lai Changxing was known as one of the country's richest and most flamboyant tycoons in the 1990s. He was also among its most corrupt, says Oliver August in The Sunday Times. A master smuggler, China's "most wanted" man ran a criminal empire worth $10bn and "took 10,000 officials with him" when he fell. Some were executed; hundreds imprisoned. Lai, 49, fled to Canada, where he has spent the past eight years fighting extradition. Who can blame him? "He should be killed three times over, and even that wouldn't be enough," said the Chinese prime minister in 1999.

Lai had a Capone-like grip on the wealthy port of Xiamen, says the South China Morning Post. He was illiterate and vulgar, yet "succeeded in subverting the government of an entire city". At the height of his career, he was China's main private trader of cigarettes and cars, and imported a sixth of its oil. Lai had everyone in his pocket, from police chiefs to Beijing politicians. "The key was bribery," says August, "and the key to bribery was sex." He built his own brothel, naming it "the Red Mansion" after a Qing dynasty tale about a wealthy family and its courtesans. His prostitutes, Miss Temporaries', had to have a high school diploma unlike him. The seven-storey mansion housed Lai's office, a five-star restaurant, saunas and karaoke rooms. He threw cash around like confetti: showering $100 notes on taxi drivers, bailing out his clients' children, and bribing successful businesswomen to become the mistresses of government ministers. All agreed he was the most genial of hosts, little suspecting he had installed cameras in all the bedrooms for blackmail purposes.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.