This photo, taken on October 8, 2020, shows armed police patrolling a commercial street in Beijing during a holiday. A police officer wearing a red armband sits at the alley entrance, constantly monitoring the movements of the public. (Photo by Kevin Frayer/Getty Images)
[November 21, 2024] The CCP's local police have engaged in cross-border profit-driven law enforcement targeting entrepreneurs, a practice referred to as "distant-water fishing," which has sparked controversy. Recently, the Zhejiang Provincial Procuratorate issued a rare announcement about apprehending police officers from another province attempting "distant-water fishing" in the Jiangsu-Zhejiang region. However, they did not disclose the province of origin. Analysts suggest that this case is just the tip of the iceberg and does not yet address issues such as arbitrary fines. It is speculated that the affected entrepreneur may have connections or a background strong enough to bring these out-of-province officers to justice. Nevertheless, the authorities' refusal to disclose which province the officers came from reflects ongoing collusion among officials.
On November 20, the Zhejiang Provincial Procuratorate held a press conference to report on the province's so-called "Procuratorial Protection of Enterprises" special action since the beginning of the year. Among the cases mentioned was an example of profit-driven law enforcement.
According to The Paper, the press conference disclosed details about the abuse of power case involving police officers Yang Moumou and Zhan Moumou.
Reports indicate that starting in late May 2023, police officer Yang Moumou and auxiliary police officer Zhan Moumou, from a public security bureau in a county outside the province, sought to obtain personal illegal profits. They privately brought police uniforms, handcuffs, body cameras, and other police equipment, driving to Zhejiang and Jiangsu provinces with the intent of extorting property from entrepreneurs under the pretext of helping resolve cases. On June 11, 2023, Yang and Zhan took entrepreneur Shen Mou from his home in Wujiang, Jiangsu, claiming it was to cooperate with a police investigation. While driving, Yang hinted to Shen that he could help resolve the case in exchange for financial benefits. However, Shen took advantage of their momentary inattention, jumped out of the car in Deqing County, Huzhou, Zhejiang, and called the police.
Local police in Zhejiang initiated an investigation into Yang Moumou and Zhan Moumou on charges of impersonation and fraud. However, the investigation revealed that both individuals held official judicial roles, making it impossible to proceed under the original charges. The case stalled until the Deqing County Procuratorate intervened early, suggesting that the two might be suspected of abuse of power—a charge under the jurisdiction of the procuratorate. The evidence was subsequently forwarded to the Huzhou City Procuratorate. It was confirmed that Yang and Zhan were judicial personnel. Eventually, the Deqing County Procuratorate charged them with abuse of power, and the county court sentenced Yang to eight months and Zhan to seven months in prison.
Commentator Li Linyi told Epoch Times that it is rare to see police officers punished for extorting money in another jurisdiction, suggesting that the targeted entrepreneur might have had influential connections, leading to the officers' arrest and sentencing. Otherwise, such cases are often resolved through negotiation and release. Li further noted that the case focused on extortion but did not touch upon more controversial issues such as arbitrary fines, asset seizures, and account freezes. Additionally, the authorities did not disclose which province the officers were from, reflecting ongoing collusion and protectionism among officials.
As the fiscal situation of local governments across China becomes increasingly strained, and with fines and confiscated revenues directly benefiting local finances, many public security, procuratorate, and court departments have been driven by profit motives to engage in cross-regional law enforcement. This practice has been dubbed "distant-water fishing."
On October 16, Huaxia Times revealed a report from the Guangdong Provincial Situation Research Center, titled Guangdong Provincial Situation Internal Reference, published in April this year. The report stated that in recent years, cities in the Pearl River Delta, such as Guangzhou, Shenzhen, and Dongguan, have become hotspots for cross-regional law enforcement by public security forces. For example, in Guangzhou alone, nearly 10,000 businesses—such as Pupu, Yi Jiankang, and Jiujun—have been targeted since 2023. The vast majority are private enterprises, and most cases reportedly show clear profit-driven motives behind the enforcement.
One case reported by Chinese media involved a county public security bureau in Chongqing that filed a fraud case merely because a local individual claimed that a purchased "Yao Bath Bag" was ineffective. Over 300 police officers were dispatched to Hangzhou to raid the company producing the product, arresting 155 people. The alleged amount involved in the case was as high as 200 million RMB.
In another case, Liu Mou, a police station chief in Cili County, Zhangjiajie City, Hunan Province, openly stated during an investigation of Wuhan Yuancheng Group for suspected illegal business operations: "The original intent of the case was just to get some money—20 to 30 million RMB will do."
The Guangdong Yi Jian Kang Group also fell victim to "distant-water fishing." This company had achieved revenues of 2.423 billion RMB in 2022 and submitted an application for a public listing in Hong Kong by the end of June 2023. However, in October 2023, the Public Security Bureaus of Jiaozuo and Shangqiu in Henan Province dispatched over 1,600 police officers to Guangzhou, accusing the group of fraud. Despite the initial alleged case amount being only around 600,000 RMB, law enforcement officers from Jiaozuo and Shangqiu froze 64 accounts related to the group’s subsidiaries.
As a result, Yi Jian Kang Group was forced to withdraw its Hong Kong IPO application. Due to financial constraints, the group’s operations were paralyzed and have yet to resume normal production and business activities.
Recently, there have been cases of "distant-water fishing" using online fraud allegations, targeting individual sales transactions. For example, in Shaoxing, Zhejiang, an individual sold a watch priced at 400,000 RMB. Shortly after receiving the payment, their bank account was frozen, and they were subsequently arrested by the police on charges of involvement in online fraud.
On October 8, Chinese Premier Li Qiang emphasized during a meeting the need to curb illegal cross-regional law enforcement and profit-driven enforcement practices.
David Huang, a U.S.-based economist, previously told Epoch Times that Beijing's central government has long been aware of these practices. However, it relies on local governments to enforce its policies and on public security forces to maintain regime stability. As a result, it is reluctant to excessively crack down on local governments and public security, procuratorates, and courts. Local governments face financial strain, and these enforcement agencies are funded by local finances.
Rights lawyer Wu Shaoping, also based in the U.S., told Epoch Times that police engaging in "distant-water fishing" to boost local revenues are often rewarded. This effectively encourages such practices across regions, a consequence of the CCP’s tacit approval.
Editor: Lin Congwen
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