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CH509 | GSI
🕑 Added 2025-09-24 14:41:12 +0000 UTCFuzhou, Fujian Province.
Fuzhou, the provincial capital, was an ancient city where the fortress built by Emperor Gaozu of Han and numerous historical relics still remained. It had long served as a gateway—either for those departing the mainland toward the sea or for those arriving in China from abroad.
In fact, it was from here that Admiral Zheng He, the famous eunuch admiral under the Yongle Emperor of the Ming Dynasty, launched his grand fleet that sailed across the Indian Ocean and reached as far as Africa.
In modern times, facing Taiwan across the strait, the city held immense economic and military significance.
With China’s rapid economic rise, Fuzhou had grown so lively that people often said the city’s streets changed overnight. Yet recently, as though struck by a sudden harsh winter, the entire city seemed frozen, holding its breath.
The reason was a massive corruption scandal: Zhang Daming, chairman of the Haian Group—one of the top five companies in Fujian Province—was exposed for smuggling cars, cigarettes, petroleum, and electronics for eight years, evading taxes worth a staggering two billion dollars.
It wasn’t just customs officials and the public security bureau who were implicated. High-ranking figures in the Party, government, and even the navy were revealed to have accepted bribes, lavish entertainment, and turned a blind eye to the smuggling. The entire province was thrown into turmoil.
Outraged, President Jiang Zhenzhong personally ordered a thorough investigation. The Central Party Discipline Inspection Commission dispatched a special task force, which launched an uncompromising probe regardless of rank or position.
Over a thousand individuals across the Party, local government, and military were subjected to investigation, leaving the city in an atmosphere like walking on thin ice.
Liu Xiangfu, who had only recently been appointed Acting Governor of Fujian Province, could not escape the fierce scrutiny of the special task force.
Inside a cramped interrogation room without a single window, Liu sat alone on a worn folding chair, his face haggard.
He tried to straighten his back, but an exhaustion as heavy as waterlogged cotton dragged him downward.
For more than a week, confined within the dim walls of the interrogation room, he endured relentless questioning. Investigators pressed him over and over again about whether he had any connection to Chairman Zhang Daming’s corruption case, slowly wearing down both his body and spirit.
His once crisp, immaculately ironed dress shirt was now soiled and wrinkled. The neatly combed hair he once kept so polished hung loose and disheveled.
It was a stark contrast to just days earlier, when, after the former governor had been transferred to Chongqing as Party Secretary, Liu had been promoted as Deputy Governor and Acting Governor of Fujian—the youngest official of such rank, riding high on his success.
The investigators did not inflict physical pain or deprive him of sleep.
Yet the endless barrage of questions—“Is this true?” “Did you really never give special favors to Chairman Zhang Daming?”—delivered with stubborn persistence, weighed on him like unbearable psychological torture.
A single misplaced word here could destroy everything he had built and send him plunging into ruin.
That was why every answer, every second under questioning, felt like an endless torment.
But despite his weary face, Liu Xiangfu’s eyes still burned with life.
“…If I had been caught completely unprepared, I wouldn’t have been able to endure this.”
Leaning back against the chair, Liu Xiangfu muttered quietly to himself.
He shuddered at the thought of what might have happened if, during his visit to Korea a few months ago, he had ignored Seok-won’s warning and failed to tidy up matters in advance.
“I really owe Chairman Park a great debt.”
Although their relationship had always been friendly, Liu Xiangfu had kept a measure of caution. But this incident made him place full trust in Seok-won. He now regarded him not just as a connection in the web of guanxi, but as true xiongdi—a brother in all but blood.
As he sat alone in the interrogation room, the heavy iron door suddenly opened and a stone-faced investigator stepped inside.
“Have you finished your written statement?”
“Yes.”
The investigator came forward, sat down, and picked up the statement lying on the desk.
For the past week, Liu had written the same explanation dozens of times, until he was sick of repeating it.
Glancing over the three A4 pages filled tightly with characters, the investigator lifted his head and spoke in a low, weighty voice.
“Rear Admiral Liu Suqing of the East Sea Fleet was found yesterday to have accepted bribes and lavish entertainment from Chairman Zhang Daming. He has been dismissed from all positions.”
“…!”
Liu Suqing had been a powerful figure in the East Sea Fleet, which operated across the East China Sea.
Like Liu Xiangfu, he was a member of the so-called Princelings—the Taizidang, children and relatives of veteran Communist revolutionaries—who wielded significant backing not only in the People’s Liberation Army but also in the Party leadership in Beijing.
The news that someone of such stature had been stripped of his rank made Liu Xiangfu’s face harden involuntarily.
The investigator leaned back in his chair, studying Liu silently, before speaking slowly.
“During your tenure as deputy mayor of Xiamen, when the special economic zone was being expanded, you granted favors to a local construction company and pocketed five hundred thousand yuan.”
That had been well over ten years ago.
The thought that they had dug back that far made Liu’s heart sink as if it had dropped into a void.
“No matter how much you try to conceal, you cannot completely deceive our eyes.”
At the investigator’s dry words, Liu held his breath and swallowed hard.
The investigator tossed the written statement onto the desk and said coldly:
“Those in your position are meant to serve the people. To exploit your post for personal gain is an unforgivable act.”
Liu thought it was the end. But then the next words made his eyes widen.
“However, compared to the countless corrupt deeds committed by Admiral Liu Suqing and the others, your offense is relatively minor. More importantly, considering the merits you have achieved thus far, the Party has decided to grant leniency this time. You should be grateful.”
“…!”
“If you ever again commit an act of corruption, your past crimes will be added to the new ones, and you will face severe punishment. Remember this always.”
“Then… am I free to go?”
With sweat streaming down his face, Liu Xiangfu leaned forward and asked.
The investigator gave a slight nod.
“Consider yourself lucky,” he said curtly, as if spitting out the words.
Having come back alive from the very brink of hell, Liu finally felt the tension drain from his body, his shoulders slumping in relief.
***
[Over 300 senior officials in Fujian Province, Xiamen, and Fuzhou implicated in Chairman Zhang Daming’s corruption scandal punished—14 sentenced to death]
Reading the bold headline splashed across a Hong Kong newspaper, Seok-won murmured quietly to himself.
“So it’s finally been wrapped up like this.”
The sweeping investigation carried out over the past month had left Fujian’s military, Party, and government in utter ruins.
Given Chairman Zhang Daming’s decade-long lobbying and influence that reached in all directions, it was inevitable that hardly anyone at the top had escaped involvement.
“At first, they probably set out to uproot corrupt officers, Party members, and officials completely. But the deeper they dug, the more connections kept unraveling like sweet potato vines, until the situation grew too large to control.”
If corrupt officials had simply been exposed and severely punished, the Chinese people would have cheered, showering praise on the Communist Party leadership in Beijing.
“But if the corruption wasn’t limited to a handful of senior officials but instead ran through the entire Party, government, and military in Fujian, then the story changes.”
The reality was that virtually all those in power in Fujian had been tainted. That meant public anger could easily turn toward the central government and the Party leadership itself.
“The Party leaders in Beijing must know better than anyone that public sentiment is like a spark that can turn into a raging wildfire in an instant.”
Realizing the gravity of the situation too late, they had hurried to close the case.
Even so, the facts already revealed made it impossible for the Party and ruling elite to escape the fury and condemnation of the people.
“There’s nothing more effective at diverting the people’s eyes and hiding the ugly face of the corrupt Party than creating a hero.”
And the man chosen for that role was Liu Xiangfu.
With nearly all of Fujian’s senior officials ensnared in the corruption scandal, Liu alone stood apart, his integrity intact. It was inevitable that the people’s admiration would be heaped upon him.
As the son of a revolutionary veteran and with a record of waging anti-corruption campaigns while serving as Party Secretary in Ningde, he was the perfect figure to be presented as a hero.
Sure enough, midway through the article, there was a section stating that while many senior officials in Fujian were implicated, Liu Xiangfu alone was revealed to be incorruptible.
“Acting Governor Liu Xiangfu led a disciplined, restrained life, and because of this he was able to withstand all manner of temptations without faltering…”
Not only the Hong Kong press but also mainland media outlets like CCTV and People’s Daily were running extensive stories. It was obvious that the Party leadership had deliberately decided to elevate Liu Xiangfu.
“With this, Liu Xiangfu, who was practically unknown, has become a national star.”
It was the perfect example of fortune emerging from misfortune.
Folding the newspaper in his hand, Seok-won thought about Liu Xiangfu’s future—how this scandal would propel him into fame and eventually lead him to become the master of Zhongnanhai, the pinnacle of political power in China.
He sank back into the plush living room sofa, lifting a glass of whiskey on the rocks to his lips, when his phone began to vibrate.
Glancing at the number on the screen, Seok-won immediately answered.
[It’s me, Boss.]
Hearing Landon’s voice, Seok-won rose from his seat with the glass still in hand.
“How did it go, the matter I instructed you on?”
[As you ordered, we’ve started taking short positions on Bank One.]
Standing before the living room’s wide glass window, phone pressed to his ear, Seok-won allowed a faint smile to touch his lips.
“Build up as many short positions as possible before their August earnings report.”
Bank One was the megabank created from the merger of First Chicago NBD and Banc One of Ohio.
With total assets of $260 billion, it ranked among the top five largest U.S. banks, behind Citigroup, Bank of America, Chase, and JPMorgan.
[As expected, there could be some post-merger performance drops, but given Bank One’s market capitalization of $29 billion, I honestly doubt the share price will fall as much as you’re anticipating.]
Seok-won replied calmly, his expression relaxed.
“As I’ve said before, conservative First Chicago and the rapidly expanding, M&A-driven Bank One are like water and oil. Their corporate cultures don’t blend easily. Naturally, friction is bound to emerge in the integration process.”
[But surely the merger will also bring major positives—cost savings, asset growth, and so on?]
“You’re aware that what the market expects most from this merger is an increase in revenue from the credit card division.”
[Of course.]
“Now imagine if competition in the credit card market has overheated and subscribers are defecting en masse. What do you think happens then?”
[Investor disappointment would send the stock price plunging. Wait—don’t tell me Bank One’s credit card earnings really are deteriorating?]
With his phone in hand, Seok-won took a sip of whiskey before replying.
“Exactly. In the second quarter, profits in consumer finance and the credit card division reportedly fell by more than five hundred million dollars.”
[Is that true?!]
Landon’s startled voice burst through the receiver.
“I got this information from a reliable source. You can trust it.”
[Then if the earnings report confirms this, the stock price will nosedive.]
“Which is why you can short it with confidence.”
With a faint smile, Seok-won spoke, and Landon’s voice came back, now free of any hesitation.
[Understood.]
After a few more words, Seok-won ended the call and let his eyes wander to the glittering night skyline beyond the floor-to-ceiling windows.
“Until Jamie Dimon takes the stage, I’ll make sure to enjoy the ride.”
Contrary to the rosy expectations, Bank One would reel from severe post-merger complications. And the man who would eventually rescue it—earning the title of “Emperor of Wall Street”—was none other than Jamie Dimon.
TL/n -
Bank One was effectively "saved" following its merger with JPMorgan Chase in 2004, primarily due to the leadership of Jamie Dimon, who was CEO of Bank One at the time of the merger and later became CEO of the combined JPMorgan Chase.
Jamie Dimon is widely regarded as one of the most influential leaders on Wall Street, though he is not commonly referred to as the "Emperor of Wall Street." His reputation is that of a highly respected, pragmatic, and charismatic banking titan—often described with nicknames like "The Toughest Guy on Wall Street" or "Wall Street's Titan" because of his decisive leadership and resilience, especially through crises like the 2008 financial downturn.
+++
The Yuanhua smuggling scandal was China’s largest and most influential corruption case of the late 1990s, centered around Lai Changxing and his Yuanhua Group in Xiamen, Fujian Province.
Scope and Operations
- Lai Changxing’s Yuanhua Group smuggled a vast array of items such as oil, cars, electronics, and cigarettes—with operations valued at up to $6–10 billion.
- The scheme exploited bribed customs officials, police, and local political leadership to evade duties and taxes.
- The scandal cost China billions in lost government revenue and exposed a web of “collective corruption” involving top officials in customs, police, banking, and even connections to Beijing's political elite.
Key Details and Personalities
- Lai Changxing was described as “China’s most wanted fugitive”; he fled to Canada in 1999 but was deported back in 2011 and sentenced to life imprisonment.
- At the center of the scandal was Lai’s “Red Mansion,” a luxury clubhouse used to entertain and bribe officials—with some activities secretly recorded for blackmail.
- The investigation led to hundreds of officials questioned or detained, including deputy mayors, customs chiefs, and police officials.
Punishments and Impact
- In November 2000, courts sentenced 14 senior officials to death, with others receiving life imprisonment or lengthy jail sentences. Several sentences were later commuted.
- Scores of other officials received lesser punishments; the crackdown was widely publicized and signaled a turning point in China’s attitude toward high-level corruption.
- The case prompted reforms in customs oversight, anti-smuggling procedures, and a renewed focus on “collective corruption” within the Party and government.
Historical Legacy
- The Yuanhua scandal remains a symbol of China’s struggle with systemic political and economic corruption, and its repercussions are felt in policy reforms and ongoing anti-corruption campaigns to this day.
- Lai Changxing’s downfall and the sheer scale of the case displayed how deeply corruption could penetrate China’s booming coastal economies during the reform era.
