China’s quick execution of former top banker shows Beijing is dead serious about quelling corruption
- A legal procedure that usually goes on for months or even years was wrapped up in less than four weeks, from start of the trial to former top banker’s death
- Lai Xiaomin’s swift execution sends the sternest of warnings in matters concerning corruption and financial risks
Last week’s execution of a former top banker at one of China’s largest state-controlled asset management firms set a record – never before had a senior Chinese financial official been put to death in such a swift manner.
A legal procedure that usually goes on for months or even years was wrapped up in less than four weeks for a man who was once one of the most high-profile of Chinese bankers.
Lai’s sentencing, without the usual reprieve period, was already shocking. His quick execution – the manner of which remains undisclosed – is even more extraordinary. This has fanned widespread discussion as to whether Lai deserved to be shown mercy, particularly as his cooperation with investigators was described as being “meritorious” in state media reports.
The sheer size of his ill-gotten gains – totalling almost 1.8 billion yuan – is staggering. In a documentary that aired on state television, Lai was shown to have hidden away about 270 million yuan in cash in a flat that he nicknamed “the supermarket”.
But the amount that Lai had amassed was just one factor in the court’s ruling. The official Xinhua news agency reported that Lai’s conduct “endangered national financial security and financial stability” – a charge that goes far beyond personal greed. Xinhua said Lai had “caused extremely heavy losses for the nation and the people”, for which he must be subject to the maximum punishment.
Thus, Lai’s swift execution sends the sternest of warnings in matters concerning corruption and financial risks.
As China is trying to boost domestic consumption and narrow its wealth gap, conspicuous corruption activities – Lai was known for his decadent lifestyle with multiple lovers – are increasingly intolerable for Beijing.
More importantly, as the country is trying to fix its weak links and vulnerabilities amid a strategic rivalry with the United States, wasting financial resources and creating additional risks for the financial system simply cannot be excused.
