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[Weekly Preview] Involved in Embezzlement Cases Exceeding 3 Billion Yuan, Surpassing Lai Xiaomin: How Did the Low-Ranking Official Li Jianping Become a Major Corrupt Figure? (AI Translation)

Published: Dec. 9, 2023  12:05 p.m.  GMT+8
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文|财新周刊 冯华妹

By Caixin Weekly’s Feng Huamei

  冬日的青城呼和浩特寒气逼人,从市政府大楼相邻的如意河音乐广场向东望,河对岸是一个体量颇大的楼盘,高层住宅、写字楼和商铺一应俱全。这个位于城市中心的房地产项目名为水岸小镇,占地约600亩,分为A—H及K九个区域,总投资数十亿元,由呼和浩特春华水务开发集团有限公司(下称“春华水务”)开发。

In the winter, a biting chill permeates Hohhot, the capital of Inner Mongolia. Looking east from the Ruyi River Music Plaza, adjacent to the city government building, one sees a sprawling real estate development across the river. The project features high-rise apartments, office buildings, and retail shops. Located in the heart of the city, the development is called Riverside Town, covering approximately 600 mu (about 98 acres). It is divided into nine sections, labeled A through H and K, with a total investment in the billions of yuan. The project is developed by Hohhot Chunhua Water Development Group Co., Ltd. (hereinafter "Chunhua Water").

  如意河东岸、水岸小镇最西端,是被称作水岸漫街的狭长步行街,两侧错落分布着11栋小楼,聚集着餐厅、茶楼、咖啡馆等,是呼市一处热闹的网红打卡地。不过,就在几年前,这里还是一片安静的别墅区。2023年11月中旬,财新走访水岸漫街时,K7号楼里一家餐厅正在装修。“之前这一片别墅区都是私人会所,为领导服务的,不对外开放。”施工负责人说。

On the eastern bank of the Ruyi River, at the westernmost tip of Shuian Town, lies a narrow pedestrian street known as Shuian Manjie. Flanked by 11 small buildings housing restaurants, teahouses, and coffee shops, the area has become a lively hotspot for social media influencers in Hohhot. Yet only a few years ago, it was a quiet villa community. When Caixin reporters visited Shuian Manjie in mid-November 2023, renovations were underway at a restaurant in Building K7. “Previously, this entire villa area consisted of private clubs reserved for serving officials and was not open to the public,” the construction manager said.

  作为私人会所,当年的K7号别墅,服务对象是长期实际控制春华水务这家国有企业的李建平。2001年4月李建平在担任呼和浩特市水务局党委书记和水资源管理局局长期间主持创办了这家国有企业,并兼任董事长,直到2011年3月升任副厅级的呼和浩特经济技术开发区党工委书记之后。

As a private clubhouse, Villa K7 at the time catered to Li Jianping, who had long exercised de facto control over Chunhua Water Affairs, a state-owned enterprise. In April 2001, while serving as Party Secretary of the Hohhot Water Affairs Bureau and Director of the Water Resources Management Bureau, Li Jianping oversaw the establishment of this state-owned company. He concurrently served as its chairman until March 2011, when he was promoted to Party Secretary of the Hohhot Economic and Technological Development Zone, a position at the sub-provincial level.

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Caixin is acclaimed for its high-quality, investigative journalism. This section offers you a glimpse into Caixin’s flagship Chinese-language magazine, Caixin Weekly, via AI translation. The English translation may contain inaccuracies.
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[Weekly Preview] Involved in Embezzlement Cases Exceeding 3 Billion Yuan, Surpassing Lai Xiaomin: How Did the Low-Ranking Official Li Jianping Become a Major Corrupt Figure? (AI Translation)
Explore the story in 30 seconds
  • Li Jianping, an official in Hohhot, was sentenced to death for corruption, bribery, embezzlement, and tolerating a criminal organization.
  • He was found to have colluded with others to embezzle over 1.4 billion yuan, received 578 million yuan in bribes, and misappropriated over 1 billion yuan in public funds.
  • Li's case, involving over 3 billion yuan, is considered the largest corruption case in Inner Mongolia's anti-corruption history.
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Explore the story in 3 minutes

The article investigates the unprecedented corruption case involving Li Jianping, former party secretary of the Hohhot Economic-Technological Development Area (经开区) and head of Chunhua Water Affairs, a major state-owned enterprise (SOE) in Hohhot, Inner Mongolia. Li’s case has been recognized as the largest corruption case in China’s anti-graft history, with illicit funds totaling more than 3 billion yuan (approx. $430 million), surpassing previous high-profile cases such as Lai Xiaomin (1.81 billion yuan) and Zhang Zhongsheng (1.17 billion yuan). [para. 4][para. 5]

The investigation traces Li Jianping’s career, detailing his rise from a teacher in Inner Mongolia to key positions in government and SOEs, including the founding of Chunhua Water Affairs in 2001—an SOE that consolidated water-related municipal businesses and gave Li substantial control over assets and land. His roles in Chunhua Water Affairs and the economic development area gave him unchecked authority over local resources and project development, turning these entities into his personal “kingdoms.” [para. 6][para. 7]

The main thrust of Li’s corruption involved the massive Shui’an Xiaozhen real estate project, through which Li and close associates established shell companies to carry out inflated and falsified property transactions, embezzling over 1.4 billion yuan of public funds under the guise of housing purchases for SOEs. Funds were laundered, transferred abroad, invested in luxury goods, or gambled away, leaving little that could be recovered. Li also manipulated state funds via fake land deals and loans (over 1.15 billion yuan misappropriated), and sold assets at inflated prices to related parties, funneling at least 578 million yuan in bribes. [para. 8][para. 15][para. 18][para. 22]

Much of these operations relied on loyal subordinates and a tight-knit cohort who rose with him—from drivers to corporate managers. These individuals often acted as fronts or signatories on behalf of Li but claims were made in trial that they were neither aware of nor benefitted from the corruption, being “executors” of Li's directions instead. [para. 9][para. 13][para. 14][para. 23]

The evidence against Li was extensive: the shell companies were under his control, transfers followed his instructions, and witnesses, including business partners and high-ranking managers, consistently confirmed his central role in resource allocation and asset transactions. The courts firmly rejected Li’s attempts at defense, noting that the enormous sums went directly to personal consumption, overseas transfers, or gambling activities, causing immense financial loss to the state. [para. 24][para. 26]

Li's case also included collusion with local criminal organizations. He was found to have ignored or condoned organized crime in exchange for assistance in land deals and removing obstacles to development projects—behavior that funneled state assets to criminal groups and let organized criminal elements infiltrate local administration. [para. 16][para. 28]

Despite the routine use of suspended death sentences in China’s anti-corruption drive, the severity and scale of Li’s offenses led to a rare sentence of immediate execution, only the second of its kind since the 18th Party Congress. Secondary figures in the case received long sentences, while a few remain fugitives. [para. 5][para. 32]

The article concludes by noting that China's economic-technical development zones, originally meant to spearhead market reforms, have become breeding grounds for corruption due to concentrated power, regulatory loopholes, favorable policies, large transactions, and lack of supervision—a pattern visible in recent corrupt officials nationwide. Scholars advocate stronger, technologically enabled supervision of development zones to curb future corruption. [para. 34][para. 35][para. 36]

AI generated, for reference only
Who’s Who
Hohhot Chunhua Water Development Group Co., Ltd.
呼和浩特春华水务开发集团有限公司
Hohhot Chunhua Water Development Group Co., Ltd. is a state-owned enterprise established in April 2001 by the Hohhot Water Resources Administration. It has a broad business scope, including water utilities, municipal projects, real estate, and tourism. The company was founded and initially chaired by Li Jianping, who later used his influence over it for personal gain, leading to a corruption case involving billions of yuan.
Inner Mongolia Changrong Real Estate Co., Ltd.
内蒙古长融房地产有限公司
Inner Mongolia Changrong Real Estate Co., Ltd. is a real estate company that collaborated with Hohhot Chunhua Yihe Real Estate Co., Ltd. on the Shui'an Xiaozhen commercial property project. The company is connected to Chunhua Water Affairs via its subsidiary, Hohhot Huizeheng Investment (Group) Co., Ltd. It's implicated in a corruption case involving Li Jianping, who fraudulently acquired state funds through real estate transactions with the company.
Hohhot Chunhua Yihe Real Estate Co., Ltd.
呼和浩特春华怡和置业有限公司
Hohhot Chunhua Yihe Real Estate Co., Ltd. is a subsidiary of Hohhot Chunhua Water Development Group Co., Ltd. The company was involved in a corruption case where its commercial properties at the "Shui'an Xiaozhen" project were used to defraud state-owned funds. It was jointly developed with Inner Mongolia Changrong Real Estate Co., Ltd.
Hohhot Gaozhi Real Estate Brokerage Co., Ltd.
呼和浩特市高智房地产经纪有限公司
Hohhot Gaozhi Real Estate Brokerage Co., Ltd. (Hohhot Gaozhi) was involved in a corruption case with Li Jianping, a former party chief of Hohhot Economic and Technological Development Zone. Hohhot Gaozhi was responsible for selling properties in the Water Coast Town project, which was used in a scheme to embezzle state funds. The company's actual controller, Ming Xing, was implicated as an accomplice in the embezzlement.
Hohhot Huizeheng Investment (Group) Co., Ltd.
呼和浩特惠则恒投资(集团)有限公司
Hohhot Huizeheng Investment (Group) Co., Ltd. is a wholly-owned subsidiary of Hohhot Economic and Technological Development Zone Investment and Development Group Co., Ltd. In a corruption case, the company was used by Li Jianping, then secretary of the ETDZ Party Working Committee, and others to acquire commercial housing in the Water Town project at inflated prices, defrauding state funds.
Hohhot Economic and Technological Development Zone Investment and Development Group Co., Ltd.
呼和浩特经济技术开发区投资开发集团有限公司
Hohhot Economic and Technological Development Zone Investment and Development Group Co., Ltd. (呼和浩特经济技术开发区投资开发集团有限公司) is a wholly-owned subsidiary of Hohhot Economic and Technological Development Zone Investment and Development Group Co., Ltd. It was involved in a corruption case where its state-owned funds were used to acquire commercial real estate at inflated prices, leading to the embezzlement of over 1.437 billion yuan.
Deyuan Xingsheng Industrial Co., Ltd.
德源兴盛实业有限公司
Deyuan Xingsheng Industrial Co., Ltd. was established by Li Jianping, the former Party Secretary of Hohhot Economic and Technological Development Zone, along with others. This company was used by Li Jianping to acquire commercial properties at a low price and then resell them at inflated prices to state-owned companies under his jurisdiction, allowing him and his associates to embezzle over 1.43 billion yuan in public funds.
Inner Mongolia Hohhot Fuzhou Chamber of Commerce
内蒙古呼和浩特福州商会
Chen Jing, identified as the chairman of the Inner Mongolia Hohhot Fuzhou Chamber of Commerce, is a key figure in the case. He engaged in numerous discussions with the family of Li Jianping and was essential in the formation and operations of the companies involved in the fraud, according to the article.
Wujieyuan Art Co., Ltd.
无界苑艺术品有限公司
Wujieyuan Art Co., Ltd. is a company based in Inner Mongolia. The legal representative of Wujieyuan and another company, Inner Mongolia Dongsheng Real Estate Development Co., is Yang Jindong. Li Suchao, Li Jianping's son, is also a shareholder in both companies.
Inner Mongolia Dongsheng Real Estate Development Co., Ltd.
内蒙古东晟房地产开发有限公司
Inner Mongolia Dongsheng Real Estate Development Co., Ltd. (东晟公司) is a company for which Yang Jindong is the legal representative. Li Jianping's son, Li Suchao, is also a nominal shareholder of this company, without investment or participation in its operation.
Hohhot Urban and Rural Construction Demolition Company
呼和浩特市城乡建设拆迁公司
Hohhot Urban and Rural Construction Demolition Company was managed by Yang Jindong, who contracted major demolition projects for Spring Water Affairs due to his relationship with Li Jianping. Yang allegedly made payments to Li and his associated companies, totaling 578 million yuan, disguised as "service fees" or to cover debts.
Hohhot Weidong Trading Co., Ltd.
呼和浩特市威东商贸有限公司
Hohhot Weidong Trading Co., Ltd. (威东商贸) received 65 million yuan from Yang Jindong, supposedly as a "kickback" to Li Jianping. The company is connected to the massive corruption case of Li Jianping, who was sentenced to death for crimes including embezzlement and bribery.
Yunnan Mingfeng Jiaye Investment Management Co., Ltd.
云南铭丰佳业投资管理公司
Yunnan Mingfeng Jiaye Investment Management Co., Ltd. (Mingfeng Investment) received 19.21 million yuan from Wei Dong Trading Co., Ltd. This payment was identified as a repayment by Li Jianping for previously purchased red wine, according to Hao Gang, the company's actual controller.
Inner Mongolia Nandian Trading Co., Ltd.
内蒙古南店商贸有限责任公司
Inner Mongolia Nandian Trading Co., Ltd. (南店商贸) co-operated with Li Jianping in fraudulent schemes. Li Jianping, then Chairman of Chunhua Water Affairs, colluded with Tan Haiyun (谭海云), manager of Nandian Trading, to forge agreements. They embezzled over 416 million yuan by falsely claiming land acquisition payments, with over 260 million yuan transferred abroad.
Hohhot Dafa Trading Co., Ltd.
呼和浩特市大发商贸有限责任公司
Hohhot Dafa Trading Co., Ltd. (大发商贸) was involved in a scheme with Li Jianping, where they signed a fraudulent agreement to illicitly transfer over 416 million yuan from Chunhua Water, a state-owned company. This money was meant for land acquisition but was improperly used for personal gain and other activities.
Inner Mongolia Mingcheng Industrial Development Co., Ltd.
内蒙古名城实业发展有限公司
Inner Mongolia Mingcheng Industrial Development Co., Ltd. is connected to a corruption case involving Li Jianping, a former party official. Li Jianping instructed a state-owned company to transfer 255 million yuan to Mingcheng Company, which was headed by Chen Jing, a friend of Li. This money was part of a larger scheme of misappropriation of public funds.
Changzhou Nuoya Technology Co., Ltd.
常州诺亚科技有限公司
While not directly specified in the article, it can be inferred that Changzhou Nuoya Technology Co., Ltd. (常州诺亚科技有限公司) is linked to Jiangsu Huasheng Tianlong Optoelectronic Co., Ltd. (天龙光电). Changzhou Nuoya was the initial major shareholder of Tianlong Optoelectronic, which was established in 2001. In 2014, Li Jianping sought to acquire Changzhou Nuoya to gain control of Tianlong Optoelectronic.
Jiangsu Huasheng Tianlong Optoelectronic Equipment Co., Ltd.
江苏华盛天龙光电设备股份有限公司
Jiangsu Huasheng Tianlong Optoelectronic Equipment Co., Ltd. (ST Tianlong) is a company that specializes in the research, production, and sale of specialized equipment for photovoltaics and optoelectronics. It was founded in December 2001, originally named Jiangsu Huasheng Tianlong Machinery Co., Ltd., and listed on the Shenzhen Stock Exchange's ChiNext board in December 2009. By 2014, ST Tianlong faced delisting due to continuous losses. Li Jianping, who was sentenced to death for corruption, acquired control of ST Tianlong through investments with misappropriated public funds, aiming to provide his son with experience managing a listed company.
Inner Mongolia Shengnaji Photovoltaic Materials Co., Ltd.
内蒙古晟纳吉光伏材料有限公司
Inner Mongolia Shengnaji Photovoltaic Materials Co., Ltd. (晟纳吉公司) is a company that partnered with Hohhot Economic and Technological Development Zone Investment and Development Group Co., Ltd. for a 3GW electronic materials industrial park and 1.5GW solar energy production line expansion project. Li Jianping used the company as a conduit to illegally transfer funds for his personal gain.
Beijing Lingguang Energy Investment Co., Ltd.
北京灵光能源投资有限公司
Beijing Lingguang Energy Investment Co., Ltd. was co-founded by Li Jianping and Zhou Jian in October 2014, serving as a platform to acquire Changzhou Nuoya and subsequently gain control of Tianlong Optoelectronics. Li Jianping's shares were held by Yang Wenying, and his son, Li Suchao, was also involved as a shareholder through another entity.
Shanghai Jingmei Electronics Technology Co., Ltd.
上海晶美电子技术有限公司
Shanghai Jingmei Electronics Technology Co., Ltd. (上海晶美电子技术有限公司) held 40% of the shares in Beijing Lingguang Energy Investment Co., Ltd. Beijing Lingguang was effectively controlled by Li Jianping and his son, Li Suchao. Zhou Jian was the actual controller of Shanghai Jingmei.
Beijing Chuanshi Huiteng Investment Co., Ltd.
北京创世辉腾投资有限公司
Beijing Chuanshi Huiteng Investment Co., Ltd. (创世辉腾) is an energy investment company based in Beijing. It was listed as a shareholder in Beijing Lingguang Energy Investment Co., Ltd., a platform company established by Li Jianping to acquire Changzhou Nuoya Technology Co., Ltd. and control Tianlong Optoelectronics. Beijing Chuanshi Huiteng Investment Co., Ltd. was later renamed Shenzhen Ruisheng Investment Co., Ltd.
Shenzhen Ruisheng Investment Co., Ltd.
深圳瑞昇投资有限公司
Shenzhen Ruisheng Investment Co., Ltd. (深圳瑞昇投资有限公司) is not directly mentioned in the article other than as a new name for the company "创世辉腾" (Chuangshi Huiteng). It is listed as one of the companies involved in the acquisition of Changzhou Noah and the controlling of Tianlong Optoelectronics, with its shares initially held by Li Suchao, Li Jianping's son.
Yangzhou Tiansheng Optoelectronics Technology Co., Ltd.
扬州天晟光电科技有限公司
The article does not mention Yangzhou Tiansheng Optoelectronics Technology Co., Ltd. Therefore, I cannot provide information about this company based on the given content.
Shanghai Zhengang Steel Ball Manufacturing Co., Ltd.
上海振钢钢球制造有限公司
Shanghai Zhengang Steel Ball Manufacturing Co., Ltd. is linked to a corruption case involving Li Jianping. The company received 20 million yuan from Beijing Lingguang at Li Jianping's instruction, part of a larger scheme where state funds were used to acquire a company for Li's son.
Inner Mongolia Saibei Star Brewery
内蒙古赛北星啤酒厂
Inner Mongolia Saibei Star Brewery is mentioned in the article in relation to a demolition project handled by Zhao Wenyuan's company, a recognized triad organization. Li Jianping, then party secretary of Hohhot Economic Development Zone, authorized the brewery's demolition project to Zhao's company, leading to violent dismantling and the fraudulent acquisition of state funds.
Beijing Wangfujing Outlet Enterprise Management Co., Ltd.
北京王府井奥莱企业管理有限公司
Beijing Wangfujing Outlet Enterprise Management Co., Ltd. signed a strategic cooperation agreement with Hu Jingkai Investment in January 2020. This led to the "Wangfujing Outlets Ruyi Town" project, which opened in December 2021 in Hohhot. The company secured a 15-year lease for the property, totaling 81,000 square meters.
Wangfujing Group Co., Ltd.
王府井集团股份有限公司
Wangfujing Group Co., Ltd. (Wangfujing, 600859.SH) is mentioned in the article in relation to the Wangfujing Outlets·Ruyi Town (王府井奥莱•如意小镇) in Hohhot. This project, which includes dining, retail, entertainment, and lifestyle services, officially opened on December 31, 2021. The property is leased, with a total area of 81,000 square meters and a 15-year lease term.
AI generated, for reference only
What Happened When
April 2001:
Li Jianping, as Party Secretary of the Hohhot Water Affairs Bureau and Director of the Water Resources Management Bureau, oversaw the establishment of Hohhot Chunhua Water Development Group Co., Ltd.
March 2011:
Li Jianping was promoted to Party Secretary of the Hohhot Economic and Technological Development Zone and ceased serving as chairman of Chunhua Water.
September 2018:
Li Jianping was dismissed from his post.
After September 2018 (Nearly a year later):
Li Jianping was expelled from the Communist Party and dismissed from public office.
November 23, 2019:
At a regional warning and education conference held in Inner Mongolia Autonomous Region, the case of Li Jianping was described as 'the biggest anti-corruption case in the history of Inner Mongolia.'
December 2020:
Zhang Qi, former member of the Standing Committee of the Hainan Provincial Party Committee and former Party secretary of Haikou, was sentenced to life imprisonment.
February 2021:
China Discipline Inspection and Supervision News revealed that Li Jianping was implicated in cases involving more than 3 billion yuan.
July 2023:
Jiang Jie, former vice chairman of the Xizang Autonomous Region’s CPPCC, was brought down.
November 2023:
Luo Yulin, former vice governor of Qinghai Province, was expelled from the Communist Party.
Mid-November 2023:
Caixin reporters visited Shuian Manjie; renovations were underway at a restaurant in Building K7.
AI generated, for reference only
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