Today’s Focus: US Immigration Crackdown on Marriage Green Card Fraud, Lawyer Exposes Risks of Sham Marriages; Supporting Private Enterprises Yet Strengthening Party Control, Is China’s Policy Effective for Private Enterprises? “Gold Trading” or “Trading Lives”? Shenzhen Boss Loses 100 Million in Gold Trading.
Last week, the US Immigration and Customs Enforcement, in conjunction with several federal departments, uncovered a large-scale marriage fraud case involving hundreds of undocumented immigrants, shocking the entire country. Insiders claim that such incidents are quite common within the Chinese community in the US.
Analyzing this phenomenon, Chinese-American lawyer Longzhu Liu in Southern California pointed out that the reasons many people opt for sham marriages boil down to two factors: expedited legal status acquisition and some individuals who originally intended to get married see obtaining a green card through marriage as killing two birds with one stone.
Upon President Trump’s return to the White House, there has been a significant crackdown on illegal immigration, causing anxiety among many individuals without legal status who wish to stay in the US. Unable to gain legal status through other channels, many are left with marriage as the only option.
However, the issue lies in the fact that while some individuals may find a genuine romantic partner and build a life together, others struggle to find a suitable match, leading them to resort to sham marriages.
Longzhu Liu revealed that there is currently a thriving market for fraudulent marriage green cards in the US, with the black-market rates skyrocketing from $70,000 to $150,000. Some even advertise these services on platforms like TikTok, offering “discounted marriage green cards” for as low as $130,000. Isn’t that a joke?
Many Chinese individuals seem unfazed by the idea of obtaining a green card through a sham marriage. Some now treat sham marriages as casually as grocery shopping or renting an apartment, almost appearing nonchalant about the legality of the process.
Unbeknownst to many, under Section 1325(c) of the US Marriage Fraud Act, anyone caught circumventing immigration laws through marriage can face up to five years in prison, a fine of $250,000, or both.
As of now, official US figures on the number of individuals obtaining legal status through sham marriages have not been publicly disclosed. However, Lawyer Liu believes that the prevalence of sham marriages in international marriages is significantly high.
This issue is not limited to the US; other countries face similar challenges, with significant rates of sham marriages. Taking the UK as an example, according to data released by the UK Home Office, every year sees around 35,000 marriages involving non-European Economic Area nationals, of which approximately 4,000 to 10,000 marriages are fraudulent.
Longzhu Liu emphasized that sham marriages often come under close scrutiny and are frequently exposed. Previous successful cases were mainly due to inefficiencies in federal agencies, allowing many to slip through the cracks. However, the current crackdown by the US government involves deploying a dedicated team to combat sham marriages effectively.
He explained that individuals who do not genuinely cohabitate face challenges passing the scrutiny of immigration authorities. Immigration officials now ask detailed questions such as wake-up times, bedtime routines, toothbrush brands, shower sequence, and bathroom habits, which, when inconsistencies arise, easily reveal the fraudulent nature of sham marriages.
While marriage green cards hold substantial weight in the US immigration system, there are certain undocumented immigrants for whom even genuine marriages do not guarantee access to marriage green cards through this channel. These scenarios include individuals who:
1. Entered the US illegally without registering with CBP;
2. Applied for political asylum without success or faced deportation orders;
3. Previously attempted a sham marriage application that was rejected or deemed suspicious by immigration authorities. It is worth noting that individuals with a history of sham marriages, even if their current marriages are genuine and have children, carry the taint of fraud suspicions, rendering them ineligible for green cards.
4. American citizens assisting a spouse in applying for a marriage green card, who exhibit extreme behaviors such as sex crimes.
Additionally, it is essential to note that many Americans find it perplexing for married couples not to live together. In their understanding, spouses are meant to reside together. Hence, some Americans are skeptical of Chinese individuals citing work-related separation as a reason for living apart. Hence, Lawyer Liu advises Chinese friends that even genuine marriages require diligent nurturing to facilitate a smooth process for obtaining marriage green cards for their spouses.
Moreover, some individuals resort to any means necessary for legal status and benefits in fraudulent marriages. For instance, intermediaries advise clients to fabricate claims of domestic violence against the citizen spouse to exploit immigration benefits. Cases of this nature are not uncommon in the US immigration system’s crackdown on sham marriages.
In a hypothetical scenario within a marriage where your partner seeks legal status through you, the partner might provoke a dispute with you intentionally, prompting a police report, resulting in legal actions against you. This calculated move aims to secure immigration benefits through misusing the Violence Against Women Act (VAWA).
Lawyer Liu warns that sudden changes in behavior or harsh remarks from a spouse could be warning signs of entrapment. If successful, the spouse could obtain legal status through false domestic violence accusations, potentially leading to divorce and asset division. This manipulative approach has enabled some individuals to secure both green cards and financial assets via this route, underscoring the importance of vigilance.
While not all international marriages involve fraud, numerous cases pursued for legal status exhibit genuine intentions for one another. For such applicants, Lawyer Liu advises adequate evidence submission to immigration authorities to validate the authenticity of their marriage. Essential evidence includes wedding records, shared living arrangements, travel and dining photographs, joint accounts, and call logs, among others, which are crucial for a successful marriage green card application.
Amid escalating tensions in the US-China trade war, private businesses in mainland China face increasingly challenging times. With substantial order losses, factory closures, and internal instability, the private sector’s future looks uncertain. Against this backdrop, the Standing Committee of the National People’s Congress abruptly passed the Private Economy Promotion Law on April 30, set to be officially implemented on May 20. Many question whether this law can genuinely assist private enterprises in overcoming their current hurdles.
The Private Economy Promotion Law purportedly supports both “public economy” and “non-public economy.” However, this is not the first instance where the central government has made such claims. Even 20 years ago, senior leadership had expressed similar sentiments. Yet, to date, the Chinese Communist Party regime has not genuinely supported private enterprises and has instead imposed myriad constraints.
Moreover, the second article of the Private Economy Promotion Law explicitly states that the development of the private economy “must adhere to the leadership of the Party,” with the thirty-fourth article emphasizing the “political guidance role of Party organizations.”
Essentially, while the CCP authorities verbally espouse support for private enterprises to operate freely, the legislative framework strengthens controls. Through this legislation, the Party has embedded directives that reinforce its hold over private enterprises rather than fostering genuine market freedom.
Economic scholar David Huang from the US asserts that the true intent of this law is not to encourage market liberty but to further control private enterprises through legislation in the guise of boosting confidence. He points out that this “political supremacy” approach contradicts genuine market economy principles.
Data reveals that as of the end of 2024, China had over 55 million private enterprises, accounting for over 90% of the total number of businesses nationwide. These private entities contribute more than half of tax revenue, 60% of GDP, 70% of technological innovation, and 80% of urban employment.
In terms of exports, in 2024, China’s total export volume reached $3.58 trillion, with private enterprises contributing $2.32 trillion, representing an overwhelming 64.6%.
Looking at the data above, it is evident that China’s economy heavily leans on private enterprises.
However, despite this significant contribution, the recent situation for private businesses has been dire. With the US-China trade war intensifying, loss of American orders has left many foreign industries in turmoil, leading to halted production, disruption in shipping services due to lack of goods for transportation, and unemployment among workers.
A business owner from Jiangsu Changzhou, under the pseudonym Baihua, lamented, “Ninety percent of the enterprises here have shut down, and everyone is struggling. It’s all thanks to Xi Jinping; he understands nothing and simply messes things up.”
Moreover, Baihua noted that the government overlooks the actual operational conditions of companies, focusing solely on “superficial figures.” Recalling interactions with local tax officials, Baihua shared instances of having to report backward growth when the reality was a 50% decline. Yet, the officials insisted on falsely reporting a 5% growth, highlighting the absurdity of the situation.
Furthermore, the law also mentions “fair competition,” prohibits “extraterritorial law enforcement,” and restricts arbitrary fines. However, industry insiders believe that despite being included in the law, these provisions are impractical to enforce.
Huang highlights that although the law advocates equality, in reality, phenomena like regional protectionism, unfair resource distribution, and the dominance of state-run enterprises persist.
For instance, “extraterritorial law enforcement,” where police from one region conduct law enforcement in another, is particularly contentious among many firms who oppose this enforcement method. Despite the ban under the new law, the absence of independent judicial oversight mechanisms poses challenges in curbing such actions. Huang emphasized that while China passed the Property Rights Law long ago, local governments continue to engage in forced evictions and land grabs. Laws are futile without rule of law and supervision.
Baihua recounted how some entrepreneurs were falsely accused by officials of offering bribes totaling 2 million yuan, leading to one entrepreneur’s tragic suicide by jumping off a building, causing shockwaves locally. She emphasized, “This type of issues can’t be solved by a single law. Now, the bosses are starting to become indifferent; who still believes in the Communist Party? They are unreliable.”
Huang noted that many affluent individuals have relocated to Europe and the US, while the middle class has sought refuge in Southeast Asia. In essence, nobody feels secure in China.
Huang advises private enterprises on strategies for self-preservation, urging them to: reduce reliance on government subsidies and export orders, diversify assets overseas, maintain transparent and compliant accounting practices, and remain vigilant against political risks at all times.
Residing in Canada, Xiaoyu, formerly an accountant, who knew several insiders within the system, emphasized that for private enterprises seeking self-preservation, departing from China may be the most viable option. Mere compliance with tax laws and party directives does not ensure protection. She recounted experiences of retired individuals whom she met during her mainland employment, prosperous individuals who started a water station as a hobby, certified accounts honestly, and paid taxes punctually. However, a change in tax officials led to audits, demands for falsified growth reports, and eventually fines imposed, leading to the water station’s closure due to compliance failures.
Recently, a piece of news went viral on mainland Chinese networks. A boss in Shenzhen’s Huangbeijin market incurred monumental losses of 100 million yuan through gold trading. Yes, that’s a hundred million! The news sent shockwaves through the market, evoking fear as gold investments are renowned for their high risks. Yet, the extent of the losses was unexpectedly staggering.
Shenzhen’s Huangbei market is one of mainland China’s largest gold trading hubs, with an annual trading volume exceeding 5,000 tons. Housing thousands of jewelry merchants and numerous gold investors, not every investor reaps profits as gold returns are intertwined with substantial risks. Many retailers bulk up on gold when prices peak, only to hurriedly sell at low rates when prices decline, resulting in significant losses.
According to local media reports, this Huangbeijin boss initially ventured into gold investments through leveraged trading and high-yield loans, aiming to amass substantial profits. However, failing to control risks amid the volatile international gold prices led to substantial losses for this boss. Presently, the Shenzhen police have initiated an investigation.
Though this boss suffered considerable losses, he is not an isolated case. Reports from Shenzhen’s local media indicate that many Huangbeijin market traders ventured into gold investments without requisite expertise and risk management skills. The instability of gold prices subjected these traders to monumental losses, calling into question the risk management capabilities in Huangbeijin’s gold market.
Beyond investment risks, the Huangbeijin market harbors several internal malpractices. Investigations by leading networks found prevalent illicit activities such as rigged weighing scales, gold theft, price manipulation, among others. These unlawful acts not only erode consumer interests, disrupt market order but also sow chaos and increase risks within the gold market, dissuading many potential participants.
Additionally, some merchants in the market exploit lower-than-Shanghai Gold Exchange prices to entice retail merchants and conduct manipulative acts through gambling-like behaviors. Experts caution that while this model may yield short-term gains during price surges, it risks financial disruptions in price downturns.
Industry insiders emphasize that gold investments, while appearing straightforward, entail multifaceted factors such as international gold prices, currency fluctuations, and policy shifts. These complexities can easily entrap inexperienced individuals into financial losses if they lack the requisite experience and financial capacity.