The CCP’s Predatory Revenue Tactics Could Spur Provincial Independence

Photo: Tiananmen Square under heavy clouds. (Lintao Zhang/Getty Images)

People News - China’s economic downturn and the heavy debt burdens of local governments have given rise to various revenue-raising methods. Among these, the most notorious is the misuse of authority by law enforcement to issue unjustified fines as a key source of fiscal income. The latest tactic involves police forces using "extraterritorial enforcement" to target businesses and meet revenue goals, a practice nicknamed "deep-sea fishing." Some netizens describe this as "legalized imprisonment and robbery," warning that this approach constitutes the "real crime of splitting the country" and could logically lead to provincial secession.

Chinese media reported the tragic case of Xing Yanjun, the general manager of a Beijing-based mobile gaming company, who died in police custody after being subjected to such practices by authorities from Inner Mongolia. Xing died on April 3, 2024, while under "designated residential surveillance." Eight months later, Inner Mongolia police dropped the case, acknowledging no criminal offense. Xing’s body was cremated on December 13, and a memorial service was held by family and colleagues in Beijing on December 19. Accountability and compensation proceedings will begin after Xing’s burial.

Xing Yanjun, 47, was a native of Inner Mongolia and the second-largest shareholder of YouYou Interactive (Beijing) Technology Co., Ltd., owning a 17% stake. In November 2023, Xing and 13 of his employees were detained by police from New Barag Left Banner, Inner Mongolia, on charges of operating an illegal gambling business. Xing was placed under "designated residential surveillance" 37 days later and found dead in custody.

Xing’s elder brother, Xing Yuejun, publicly demanded a thorough investigation into the case. He revealed that the family was not immediately informed of Xing's death but instead learned about it later that evening through other sources. The official cause of death was stated as suicide by hanging, but the family identified many suspicious circumstances.

The family also questioned the jurisdiction of the New Barag police. YouYou Interactive is registered in Beijing, where Xing also resided and worked, with no business operations in Inner Mongolia. They asked why the New Barag police traveled over 1,500 kilometers to arrest Beijing-based employees and freeze company and personal bank accounts.

Despite a decision by the local prosecutor’s office on December 15, 2023, to deny arrest approval, Xing was transferred from a detention center to designated residential surveillance instead of being released or placed on bail.

After Xing Yanjun’s death, his family repeatedly traveled to Inner Mongolia to seek justice, often encountering various obstacles. After half a year of effort, on December 6, the New Barag Left Banner Public Security Bureau decided to drop the case, determining that the alleged illegal gambling charges had no factual basis. This decision effectively exonerated all 14 people arrested in connection with Xing Yanjun’s company. According to a report by Yicai Global, following Xing’s death, the Inner Mongolia Procuratorate and the Tongliao City Procuratorate established a special investigation team to look into the matter.

The report noted that cases similar to Xing Yanjun’s, involving victims of “deep-sea fishing,” are not uncommon in recent years. For instance: On July 20, 2022, Bao Qinrui, 34, died in Shijiazhuang’s Xinle City Hospital after being under designated residential surveillance for 13 days on suspicion of “picking quarrels and provoking trouble.” In another case, Yuan Shihong, a suspect in a series of thefts in Hubei, also died while under such surveillance. In Jiangsu’s Taizhou, a suspect subjected to designated residential surveillance was denied sufficient food and sleep, eventually ending up in a vegetative state.

The legal framework for designated residential surveillance remains contentious. Unlike standard surveillance conducted at one’s home, this method allows authorities to detain individuals in undisclosed locations, often without notifying their legal representatives. Even members of China's legal community, including prominent figures like Bian Jianlin, have called for its abolition, describing it as prone to abuse and incompatible with its original intent as a non-custodial measure.

The CCP’s extensive use of such tactics has fueled widespread public anger. Critics abroad have likened China’s police to bandits, accusing the authorities of targeting economically developed southern and coastal provinces to extract wealth for impoverished northern regions.

Overseas netizens expressed outrage at the CCP's aggressive revenue-collection tactics, with some likening the actions of Chinese public security to banditry, noting that the word "公安" (Public Security) could be reversed to "山贼" (bandit). They commented: "This is a typical symptom of the central government losing control over local authorities during the twilight years of a dynasty." "In essence, northern provinces suffering from fiscal shortfalls are sending police southward to the wealthy coastal regions to kidnap and extort money in order to cover their financial crises. If this continues, the eventual outcome of regional independence movements seems entirely reasonable." "'Deep-sea fishing' is clearly sanctioned by the central government. Local governments are this impoverished, and the central government is out of funds too. To maintain the regime, they can only turn a blind eye to local authorities plundering the people. This is nothing short of 'killing the goose that lays the golden eggs.' How will they survive in 2025?"