The Communist Party Secretary of Quanzhou City, Fujian Province, Zhang Yigong, fell from power suddenly on the 7th, reportedly implicated in a bribery case involving Lin Xiucheng, the actual controller of San’an Optoelectronics. The scandal surrounding San’an Optoelectronics extends to corruption within the official circles of Chongqing and Fujian, with Lin Xiucheng’s case expected to implicate more officials in Fujian.
According to the Fujian Provincial Commission for Discipline Inspection on the 7th of August, Zhang Yigong, the Party Secretary of Quanzhou, is suspected of “serious violations of discipline and law” and is currently under investigation.
Public reports show that on the 4th of this month, Zhang Yigong visited Jinjiang and Fengze in Quanzhou to supervise and inspect workplace safety.
Zhang Yigong, born in Xiamen, Fujian in October 1968, holds a bachelor’s degree in agriculture from Fujian Agriculture and Forestry University. He has had a long career in Xiamen, serving in various roles such as Deputy Secretary and Deputy District Chief of Xiang’an District in Xiamen, District Chief and District Secretary of Huli District, Vice Mayor of Xiamen City since 2016, and in December 2019 he took on positions as a Standing Committee Member of the Xiamen Municipal Party Committee, Minister of the United Front Work Department, Secretary of the Tong’an District Committee, and Vice Secretary of the Municipal Party Committee. He became the Party Secretary of Quanzhou City in January 2023.
On July 9th this year, a fire broke out in a shoe factory in Jinjiang under Quanzhou’s jurisdiction, resulting in at least 28 deaths.
However, according to a report by Hong Kong’s Ming Pao, Zhang Yigong’s investigation is unrelated to the fire. Sources claim that Zhang Yigong is involved in the case of Lin Xiucheng, the former Chairman of San’an Group, once the richest man in Xiamen and known as the “LED King of China.” Several officials in Fujian are said to be connected to the case.
San’an Optoelectronics, headquartered in Xiamen, manufactures LED and other semiconductor products and went public in 2008. Lin Xiucheng became the richest man in Xiamen in 2010 with a fortune of 11.8 billion yuan. Five years later, his wealth grew to 34 billion yuan, making him the richest man in Fujian.
On March 20th this year, Hu Henghua, Deputy Secretary of the Chongqing Municipal Committee and Mayor, was investigated. On April 17th, Luo Lin, a member of the Chongqing Municipal Committee and Secretary of the Liangjiang New Area District Committee, was also investigated. Both Lin Xiucheng and his son-in-law Lin Ke involved in the case were arrested in March and April.
On April 29th, Caixin.com quoted sources as saying that in the case of Hu Henghua, Lin Ke transferred 30.8 million USDT (about 210 million yuan, with 10 million as exchange fee) to Hu Henghua. Following Hu Henghua’s investigation, the cold wallet was frozen, and authorities traced the flow of funds in six other cold wallets held by Lin Ke. Among them, a transfer of 15.5 million USDT was said to be sent to Luo Lin according to Lin Ke.
During Hu Henghua’s tenure in Changsha and Chongqing, he endorsed several projects for San’an Group.
Ming Pao’s report revealed that Zhang Yigong’s downfall is linked to the investigations conducted by the Central Commission for Discipline Inspection in Chongqing. It is reported that officials in Fujian, including a former mayor of a prefecture-level city who once served in Xiamen, are implicated in the case.
Lin Xiucheng has been involved in various cases over the past thirty years, including his association with Zheng Yunfeng, a former member of the Xiamen Municipal Committee and Deputy Mayor ten years ago. Court documents showed that between 2003 and 2010, Zheng Yunfeng, using his position, sought benefits for San’an Group in land use, tax refunds, and environmental impact assessments, receiving bribes totaling 1.79 million yuan from Lin Xiucheng. Zheng Yunfeng was sentenced to 10 years and 6 months in prison as a briber, but Lin Xiucheng, as the bribe giver, did not face criminal punishment.
Lin Xiucheng was also implicated in the cases of Wang Sanyun and Chen Shulong.
On July 11, 2017, Wang Sanyun, then Deputy Director of the Finance and Economic Committee of the National People’s Congress, fell from power. Officials indicated that Wang Sanyun’s corruption involved his terms in Guizhou, Sichuan, Fujian, and Anhui provinces. During his 4-year tenure in Fujian from 2002 to 2006, Wang Sanyun formed a beneficial alliance with Lin Xiucheng. By the end of 2007, after Wang Sanyun was transferred to Anhui Province as Deputy Party Secretary (and later appointed as Governor in January of the following year), he brought San’an Optoelectronics to Anhui. During his term as Governor of Anhui, Wang Sanyun provided government subsidies and orders to San’an Optoelectronics. Chen Shulong, who was then Mayor of Wuhu City, was responsible for introducing San’an Optoelectronics to the region. On November 8, 2016, Chen Shulong was arrested.
On the same day Wang Sanyun fell from power (July 11, 2017), Lin Xiucheng stepped down from his positions at San’an Optoelectronics, with his son Lin Zhiqiang taking over. At the time, this move was seen by the public as a precautionary measure.
In May of this year, it was reported by Dajiyuan that Lin Xiucheng had a powerful backing in the Fujian political circle, including current senior officials such as Cai Qi, He Lifeng, and Zheng Zhajie.
China expert Li Lin suggests that Lin Xiucheng had escaped troubles in previous cases possibly due to protection from higher authorities located in Zhongnanhai. However, now he faces repercussions, similar to the arrests of religious figure Shi Yongxin and international telecom fraud leader Chen Zhi, who were once insiders of the Communist Party. One reason for Lin Xiucheng’s downfall may be due to his excessive actions causing dissatisfaction among top leaders. Although Lin Xiucheng bribed more high-ranking officials later on, he did not benefit from his previous connections in Zhongnanhai. Another significant factor could be the financial constraints faced by the Communist Party in recent years, prompting them to “harvest” wealth from private enterprises.
On June 5th, Cai Qi, a member of the Political Bureau Standing Committee of the Communist Party of China (CPC), made his first appearance as the President of the Central Party School, while 72-year-old Chen Xi retired. Independent commentator Du Zheng wrote an article in Taiwan’s “Shang Bao” on July 3rd, suggesting that Chen Xi’s early retirement may be linked to the San’an bribery case, as he was a hidden supporter of Lin Xiucheng. Chen Xi, a native of Fujian, had benefitted from his relationship with Lin Xiucheng during his time at Tsinghua University in Beijing.