Low-Altitude Aircraft Factory Invests Over 100 Million Yuan, So Why Did the Founder Defraud the Government of 200,000 Yuan?(AI Translation)

【周刊提前读】江西低空飞机厂投资过亿 创始人为何“诈骗”20万政府奖励？

Zhu Songhua, a 48-year-old aviation entrepreneur, stood trial at the People's Court of Leping, Jiangxi Province, on April 23. Zhu, who has played a significant role in the development of single-engine, four-seat general aviation aircraft, recounted his journey of studying in France and returning to China to start a business focused on aircraft development. Zhu was detained on April 28, 2023, during a spin test flight on suspicion of bribery, which later shifted to charges of fraud and illegal business operations [para. 1].

Zhu was accused of fabricating an 85,000-yuan sales contract to receive high-tech enterprise recognition and defraud the government of 200,000 yuan. Zhu argued there was no logical reason for him to commit fraud for this amount, given that his investment in aircraft development amounted to nearly 100 million yuan [para. 3].

Born in 1975, Zhu studied at Hefei University of Technology and the University of Marseille II in France. He returned to China in 2009 to establish Shanghai Great One Aviation Technology Co., Ltd., instrumental in several significant civil aircraft projects including the C919. In 2016, he founded Shanghai Gan-I General Aviation Co., Ltd., focusing on the GA20 aircraft's development [para. 3].

Developing and certifying an aircraft like the GA20 involves a rigorous process, requiring numerous tests and approvals from various departments, including the Civil Aviation Administration of China (CAAC). Zhu’s team faced significant challenges, including limited airspace for testing near Shanghai, prompting them to relocate operations to Jiangxi in 2017 [para. 3].

Financial constraints due to pandemic-related disruptions led Zhu to seek external financing. This included personal investments from employees and relatives, totaling over 20 million yuan at the time of the case. A significant investor was Kong Falong, who later faced his own legal issues [para. 3][para. 6].

Central to Zhu’s legal troubles was the alleged fraudulent sales contract for aircraft components. The prosecution argued that Zhu intentionally misled authorities to gain high-tech enterprise status and subsequent financial rewards. Zhu countered that the contract was genuine and necessary for internal company operations. Zhu’s defense highlighted that the company focused on research and development, spending significant resources to develop the GA20 aircraft, and any inaccuracies in the application process should have been managed administratively, not criminally [para. 12].

The defense pointed out discrepancies in the prosecution's evidence regarding training on government incentives, arguing that key policy documents were issued after Zhu’s application was submitted. They asserted that Jiangxi Guanyi was, in essence, a high-tech enterprise engaged in advanced development work, aligning with governmental objectives to promote high-tech industries [para. 21].

Concluding arguments from the prosecution emphasized the principle of legality in criminal law, insisting that violations should be addressed as per the law, while Zhu’s defense argued for the application of the administrative process, asserting that Zhu lacked the intent for personal gain typically necessary for fraud charges [para. 30].

Despite Zhu's legal battles, the GA20 aircraft passed crucial certification tests and met requirements to apply for a Type Certificate by January 2024. Zhu's wife reported that the company's workforce and operations had suffered due to the legal and financial strain but remained committed to achieving airworthiness certification [para. 31].