To investigate the criminal conduct of all institutions, organizations, and individuals involved in the persecution of Falun Gong; to bring such investigations, no matter how long it takes, no matter how far and deep we have to search, to full closure; to exercise fundamental principles of humanity; and to restore and uphold justice in society.

Investigative Report: How Jiang's Regime Appropriated China's Capital and Foreign Investment Funds to Persecute Falun Gong

May 7, 2005
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Before World War II, when Hitler came into power and started to control and manipulate Germany’s economic lifelines, the economy of Nazi Germany demonstrated explosive growth, which many called the "miracle of the twentieth century." Foreign investment in Germany accelerated. Attracted by the cheap labor, some foreign-owned manufacturing bases in Germany used the forced labor of Jewish people in the concentration camps to achieve high profitability. Foreign investment not only secured Hitler’s dictatorship, but also fueled the economy of Nazi Germany and the Nazi power base.

With the support of a powerful economy, the Nazis trampled more than half of Europe, and no less than six million Jews were slaughtered under the Third Reich. At the Nuremberg Trials, the free world’s leaders vowed that "Never Again" would such a situation be allowed to come into existence. We made the solemn promise to uphold the principles of freedom and justice forever, for our own well-being and our own future.

History repeats itself. At the end of the twentieth century and the beginning of the twenty-first century, China has displayed the fastest growing economy, which many call the "miracle of the twenty-first century." But behind the economic "boom" is the Jiang regime’s policy of genocide and state terrorism against Falun Gong. This persecution has, through a globally integrated economy, involved everyone in the world. By investing in stocks, establishing joint ventures, and doing business with China, people may have unwittingly and unwillingly participated in this persecution.

"[It is a] great truth that industry, commerce and security are the surest roads to the happiness and prosperity of [a] people," wrote Thomas Jefferson to the Italian merchant Francisco Chiappe in 1789. Today, as Jiang’s regime uses China’s government, economy, and human resources to persecute a group of people having no political pursuits and seeking only to cultivate truthfulness-compassion-tolerance, and then to extend the persecution overseas, the "surest roads to happiness and prosperity" have been turned into instruments for implementing and executing the systematic global persecution of Falun Gong. The consequences have gone well beyond the scope of the economic and the territorial borders of the People’s Republic of China.

At this very moment the crimes are still being perpetrated. It is our hope that this report will provide insight about the persecution from an economic perspective. In order to protect the freedom, happiness, and prosperity of the international community, the people of the world must join together to end the persecution.

Section 1: How Seven "Economic Black Holes Were Created by Using National Resources to Persecute Falun Gong

The severe damage to China’s national economy resulting from the Jiang regime’s use of power and state asset to spend large amounts of nationally owned capital to implement and maintain the genocide against Falun Gong has created "economic black holes" that, to date, still cannot be fully assessed. Using initial evidence obtained thus far through investigation, this WOIPFG report will illustrate seven different aspects of the regime’s misuse of national funds.

1.1 "Black Hole 1": Public Funds Allocated to Security, Procuratorial, and Court Systems to Persecute Falun Gong

After its initial investigation, the World Organization to Investigate the Persecution of Falun Gong (WOIPFG) found that the political and legal branches of the government are most involved in directly persecuting Falun Gong practitioners. Over the past several years of persecution, through the central government and the public finance department’s compulsory orders to public finance departments at each level, Jiang Zemin required "public funds for executive and legal branches to be at least twice that of other administration units,"[1] "pre-guarantee funds for executive and legal department personnel,"[2] and the like. Large amounts of funds have been used directly for persecuting Falun Gong practitioners, including establishing and maintaining "610 Offices" nationwide,[3] expanding and building new police stations, detention centers, labor camps, brainwashing classes, prisons, and similar facilities,[4, 5, 6] as well as for certain special funds directly used in the persecution.

1.1.1 Government Allocates Special Funds to Suppress Falun Gong

From various work reports publicized by the government during the last five years, it has been observed that slow and even negative investment growth rates in infrastructure and city building accompanied the rapid growth of appropriations to executive and legal branches. For example, since the persecution began, the growth rate of Beijing’s various municipal infrastructure investments either increased little or decreased dramatically, while growth rate expenditures of the executive and legal branches topped the list three years after the persecution began.[7, 8, 9, 10, 11] In 2000, expenditures for Qingdao’s Public Security Department, Procuratorial Department, and courts were 213.46 million yuan (US$25.8 million)—a 48.6% increase from the previous year. Also in 2000, according to policy that guarantees funds for the executive and legal branches, Qingdao’s municipal executive and legal branch expenditures increased 34.1% from the previous year to 286 million yuan (US$ 34.55 million).[12] Similarly, Dalian’s investments in its executive and legal branches contrasted sharply with infrastructure and city building investments. In four years, the former increased 467%.[13] It is observed that with limited total budget growth, in order to sustain the persecution, various finance departments must reduce growth rates in social welfare, infrastructure, R&D, and the like, in order to supply funds to the persecution.

Consider the following examples from Jilin and Shandong, two provinces where persecution has been most severe. A government report from Jilin Province directly mentioned that the government bureaus allocated money for persecuting Falun Gong practitioners. In the "Report on the Financial Expenditures in 2001 and the Draft Budget for 2002 for Jilin Province," it stated clearly that in the year 2001 alone, the Department of Finance of Jilin Province "raised 174.89 million yuan (US$21.1 million)" to persecute Falun Gong.[14]

Similarly, in 2003, the expenditure for the executive and procuratorial departments and the courts in Jinan City, Shandong Province, was 752.49 million yuan (US$ 91 million)—a 21.66% increase from the previous year. In the 2004 budget, a special fund of 115.4 million yuan (US$ 13.9 million) was included for redeveloping procuratorial, legal, and judicial branch infrastructures.[15] According to data published by the Jinan City government, the money spent in 2002 on police stations by each level of the party committee and government in the city equaled the total amount of the previous five years added together. Some 90.1% of the police stations in the city have been rebuilt or remodeled. The police stations have been equipped with electronic monitoring systems, and the community security personnel have been equipped with pagers.[16] In that year, the executive and legal expenses in Jinan City were 618.52 million yuan (US$ 74.73 million), a 35.89% increase.[17] In the 2002 Summary of Executive and Legal Work by the city government, it was mentioned that a "special brigade for the Falun Gong issue was newly established," and a brainwashing base as well as a brainwashing center at the county level was established.[18]

1.1.2 Overly Crowded Prisons and Expensive Prison Expansion Projects

Ever since the initiation of the persecution in 1999, all prisons and forced labor camps have become overly crowded with Falun Gong practitioners who have been arrested and incarcerated. Jiang’s regime consequently ordered the Department of Reeducation Through Labor to expand and renovate prisons and forced labor camps throughout the country in order to continuously strengthen the suppression of Falun Gong.[19] Vast amounts of money have been invested in such projects.

Forced Labor Camps

According to the U.S. State Department’s 2001 Country Reports on Human Rights Practice,[20] over 200,000 persons were serving sentences, not subjected to judicial review, in China’s reeducation-through-labor camps. According to statistics from July 2001, close to half of the detainees at the time were Falun Gong practitioners.[21] This put the estimated number of practitioners detained in forced labor camps at 100,000.

Since the persecution began in 1999, the large number of arrests of Falun Gong practitioners resulted in explosive demands to expand the capacity of forced labor camps and prisons. Large investments to expand labor camps nationwide and leaps in other fees related to labor reeducation soon followed. There were three consequences.

First, many forced labor camps quickly expanded in scale. For instance, the Beijing Women’s Reeducation-Through-Labor Camp (formerly known as the Beijing Xinan Reeducation-Through-Labor Camp), which mainly detained drug addicts and prostitutes, had a capacity of between one and two hundred inmates in July 2000. By April 2001, it had incarcerated nearly one thousand persons.[22] In 2002, its director, Ma Jie, alleged that the women’s labor camp held 800 people, of which 613 were Falun Gong practitioners.[23] This was close to 77% of the labor camp inmates. Cumulatively, it had received more than 1,500 Falun Gong practitioners in a two-year period. Six out of the seven camp brigades were responsible for "transforming" (or brainwashing) Falun Gong practitioners. There were 225 policemen there. With approximately three hundred labor camps in China,[24] it is not hard to imagine how many Falun Gong practitioners have been incarcerated nationwide.

Second, investments in labor camp infrastructure, such as large-scale relocation, remodeling, expansion, and building projects, grew rapidly. At the municipal level, relocation and expansion projects often cost tens of millions of yuan (millions of US$). A 20,000-square-meter building construction project in the Falun Gong Education and Transformation Base, located in Chongqing’s Shapingba Reeducation-Through-Labor Ranch (a subdivision of the Shapingba Reeducation-Through-Labor Camp) totaled 35 million yuan (US$ 4.23 million). Similar construction projects were underway in Shuanghe Reeducation-Through-Labor Camp’s Falun Gong "Education and Transformation Base" located in Qiqihaer.[25] A project in Huzhou cost 12 million yuan (US$ 1.45 million) (September 16, 2001).[26] Guangzhou’s No 2. Reeducation-Through-Labor Camp’s received relocation funds in two stages: The Stage 1 project cost 75 million yuan (US$ 9.06 million), and Stage 2 cost an additional 17 million yuan (US$ 2.05 million).[27] Similar relocation projects have been underway in Zhangjiakou,[28] Hunan Province;[29] Henan Province (Luohe’s Henan No.2 Reeducation-Through-Labor Camp (Project registration No: HYZB20040608);[30] Henan’s No. 3 Reeducation-Through-Labor Camp[31]); Hefei Labor Camp[32] in Anhui Province; Labor Camp in Guangxi Province,[33] etc. Expansion projects took place in various localities across the country, such as at Wuhan’s compulsory drug rehabilitation center,[34] Sichuan Province’s Dayan Reeducation-Through-Labor Camp[35] (public bidding approval No.: Sichuan investment 2003 #151), Guangxi Province reeducation-through-labor camps, and Guangzhou Province’s Cencun drug rehabilitation reeducation-through-labor camp. (The first stage of the Cencun labor camp expansion project cost 78.43 million yuan (US$ 9.47 million).[36]) Relocating the Yangquan City Reeducation-Through-Labor Camp in Shanxi Province used 19.37 million yuan (US$ 2.34 million). Expansion projects in the reeducation-through-labor system at the provincial level were also staggering. The Yunnan reeducation-through-labor system received a total of 160 million yuan (US$ 19.33 million) in investments from the central and provincial government for labor camp construction within the last five years.[37] Up to the end of 2001, 130 million yuan (US$ 15.7 million) was invested in Sichuan Province’s reeducation-through-labor infrastructure, which included the completion of new construction, the expansion of three forced labor camps, and in-progress expansion projects of five forced labor camps.[38] The Xinjiang Province reeducation-through-labor system invested a total of 220 million yuan (US$ 26.58 million) in building four new forced labor camps, expanding six existing camps, rearranging and relocating two labor camps, and redeveloping all other camps, totaling 150,000 square meters.[39]

The third consequence of the increased demand for forced labor camp facilities to accommodate the massive arrests of Falun Gong practitioners was the fact that labor camp administrative fees increased correspondingly. For example, before October 1999, the Masanjia Forced Labor Camp in Liaoning Province had lost money for many years straight and was unable to pay the electric utility bills.[40] But since the persecution started in 1999, Falun Gong practitioners from various localities in the province have been sent there, and the local government allocated 10,000 yuan (US$ 1,208) for each practitioner detained. Since July 1999, an estimated 100,000 to 200,000 Falun Gong practitioners have been detained nationwide in forced labor camps without trial. According to this conservative estimate, the Chinese government has appropriated 1 to 2.1 billion yuan (US$ 120.8 to 253.73 million) to forced labor camps.


WOIPFG’s investigations have found that China’s prison system has also undergone large-scale reconstruction since the persecution of Falun Gong began. Liaoning Province invested 0.93 billon yuan (US$ 112.3 million) over three years, starting from 2002, in reconstructing the prisons throughout the province.[41] In just one location — Masanjia of Yuhong District in Shenyang City — amounts over 500 million yuan (US$ 60.41 million) were consumed. In 2003, in Masanjia, the first prison city in China, occupying 2000 Mu (329 acres), was built. This construction increased the labor camp’s capacity by 10,000 people. Purportedly, this is has been the largest investment and the largest prison reconstruction and reorganization project in Liaoning’s prison history.

According to the executive financial budget report of Hebei Province in 2002,[42] "The investment for the general scheme of the reorganization of the prison layout was 568 million yuan (US$ 68.62 million). Some 240 million yuan (US$ 28.99 million) of the total investment was from the state, with 160 million yuan (US$ 19.33 million) in place so far, and 328 million yuan (US$ 39.6 million) from the province, with 94.4 million yuan (US$ 11.4 million) already available. It has been confirmed that we will construct two new prisons, relocate two prisons, expand 17 prisons and decommission three prisons. Presently, the reorganization of the prison layout has been carried at full scale." The relocation project of Hebi Prison cost 9.15 million yuan (US$ 1.1 million).[43]

There are approximately 700 prisons in China.[44] More than 6,000 Falun Gong practitioners have been illegally sentenced to imprisonment. (This number was for 2001 or earlier.  By April 13 2005, other sources indicated that total number of detained Falun Gong practitioners reached more than 210,000.

1.1.3 Sources of Money Used in Persecution

Investigation has revealed that local and special project appropriations, in addition to state appropriations and self-raised funds, have contributed to labor camp relocation and expansion funds. However, a large portion of these funds came from national debt capital. For example, of the previously mentioned  35 million yuan (US$ 4.23 million) invested in Shapingba Reeducation-Through-Labor Ranch’s Falun Gong Education and Transformation Base, 19.5 million (55.7%) has been funneled through the national debt capital plan. [45] National debt capital also accounted for 23% of the 19.37 million yuan (US$ 2.34 million) invested in relocating Shanxi Province’s Yangquan City Reeducation-Through-Labor Camp mentioned in the previous section under "Forced Labor Camps."  Investigation found that this capital is a part of the 214-million-yuan (US$ 25.85 million) national debt subsidy given cumulatively to Yangquan City’s public security, procuratorial, and court departments’ eleven projects within the last five years.[46] As of 2004, the Yangquan municipal government’s work report still emphasized "keep away from and severely strike against Falun Gong."[47] In 2002, the central government arranged 2.526 billion yuan’s (US$ 305.2 million) worth of debt capital for 125 investment projects in Guangdong Province; 1.29 billion (US$ 155.86 million) of the totals were central government national debt (appropriation). An additional 1.235 billion yuan (US$ 149.2 million) was local national debt. Public security, procuratorial, and court projects amounted to 64 of the 125 projects and totaled 185 million yuan (US$ 22.35 million).[48]

Furthermore, up until December 2001, Jiangxi Province’s executive and legal systems had arranged for fifty national debt projects, and 168.65 million yuan (US$ 20.37 million) of the total 533 million yuan (US$ 64.4 million) were national debt funds. Investments for reconstructing dangerous elementary school buildings, on the other hand, amounted to only 58 million yuan (US$ 7 million)—10% of the investment in the executive and legal systems.[49]

Zhangjiakou City strove after 8.5 million yuan’s (US$ 1.02 million) worth of nation debt funds. Municipal reeducation-through-labor camps received 4.5 million yuan (US$ 0.543 million) of the funds.[50] Additionally, ten projects in Yichang City were included in the 2003 special project fund (national debt) subsidy to local public security, procuratorial, and court departments. Of the more than 70-million-yuan (US$ 8.45 million) investment called for, 9.3 million yuan (US$ 1.12 million) of it was national debt.

In the five-year-long persecution, Jiang Zemin’s regime, using national policy, brought "building public security, procuratorial and court system infrastructure as national debt investment’s keystone" to the forefront.[51]According to official information released on March 17, 2004, 110 billion yuan’s (US$ 13.29 billion) worth of national debt has been used in building procuratorial and legal system infrastructure. Such construction has been one of the keystone investments.[52]

Visible from various government work reports within the last five years, persecution of Falun Gong has been aired as a major and pivotal government achievement in the public security, procuratorial, and court systems everywhere and at every level. The bias in the Jiang regime’s financial policy in suppressing Falun Gong is evident from the large national debt investments used to strengthen the executive and legal systems, especially projects such as building and remodeling forced labor camps and jails. At the same time, it can be seen that the state’s finances could no longer sustain such enormous expansion of the executive and legal branches. The debt could only be transferred by way of citizens buying it in order to fill the "economic black hole." In this way, the public has thus unknowingly supported this persecution and is being seriously harmed. Apparently, investment in the "economic black hole" is non-refundable and never-ending.

Moreover, many funds used in the persecution of Falun Gong have been obtained through other means or by using other names. For instance, in Wuchang District, Wuhan received a 4 million yuan (US$ 0.48 million) appropriation in the name of establishing a flood-prevention headquarters, and instead used the funds to build a prison-like brainwashing base surrounded by high walls and electric wire. This facility officially started operation in June 2001.[53]

1.1.4 Torture and Persecution Behind the Upsurge in Budget

Investigating provinces where the persecution has been most severe (such as Shandong, Hebei, and Jilin) has revealed that the increased rate of investment in political and legal systems usually correlates very well with the severity of the persecution.

In Hebei Province, for example, the budget for public security offices, prosecutors’ offices, people’s courts, and judicial facilities increased 2.23 fold from 1.92 billion yuan (US$ 231.98 million) in 1997 to 4.29 billion yuan (US$ 518.33 million) in 2002. The average annual rate of increase was 17.4%.[54] In 2003, Zhang Chunfu, the head of the Hebei Provincial Department of Justice said in his work report,[55] "[Hebei Province] is in the leading position in terms of educating and transforming criminals. Our approaches and experience have been promoted to our colleagues nationwide by related offices of the Central Committee of the Chinese Communist Party (CCP) and Department of Justice. Even with a very crowded situation in prisons and a shortage of space in detention centers, we held an additional 15,826 criminals in prisons and 2,924 people for re-education through labor this year [2002]" The report also mentioned the ‘Spring Thunder Project,’ a project initiated specifically to educate and transform Falun Gong practitioners.  The report also mentioned that "the 610 Office of the Central Committee of the CCP and the Ministry of Justice promoted the successful approaches in Hebei Province nationwide."

According to an investigation, in April 2003, the 610 Office of the CCP Central Committee and the Ministry of Justice convened at a conference in Hebei Province.[56] The conference recommended that the reeducation-through-labor system nationwide carry out the so-called Spring Thunder Project, a project dedicated to "transforming Falun Gong practitioners in a concentrated manner." At the conference, the 610 Office of the CCP Central Committee and the Ministry of Justice forcefully promoted the "advanced experience in transformation" in labor camps in Hebei Province and Shanxi Province, which is a method of torture called the "straitjacket." The conference specified that labor camps all over the country must "transform Falun Gong practitioners" in the same way. (Note: The straitjacket method involves forcing a Falun Gong practitioner to wear a specially designed garment and pulling the practitioner’s arms behind the back and binding them in a twisted position. Then the police pull the practitioner’s arms over the shoulder to the chest, tie up the practitioner’s legs, and hang him/her up on an iron window with both feet off the ground. They gag the practitioner with cloth and insert an earphone into the practitioner’s ears to continuously broadcast slanderous propaganda against Falun Gong. As soon as this torture method was applied, the practitioner’s shoulders, elbows, and wrists would instantly break and fracture.  The backbone would also fracture if the practitioner was subjected to this torture method for an extended period of time, and the victim died in excruciating pain. The tragic deaths of Falun Gong practitioners tortured by the straitjacket method occurred in the Female Forced Labor Camp of Shibalihe, Henan Province.

According to a report on Clearwisdom Net, "Since April 22 (2003), six Falun Gong practitioners were tortured to death by this torture method. The identities of three of them are known: they are Zhang Yali (Female), Zhang Baoju (Female) and Guan Ge (Female). It was also known that there was at least one elderly person over 60 years old among the victims." "According to one information source, many labor camps had great concern and hesitated to use ‘Strait Jackets’ as a torture method. The labor camp staff was worried that they would be held responsible for any casualties. However, the 610 Offices at different levels set hard and fast rules regarding ‘transformation rates’ and correlated it with promotion or demotion, salaries, bonuses, and employee benefits. That is to say, under the instruction of the Central 610 Office, the local 610 Offices at different levels incited and coerced staff members and police in labor camps to carry out the brutal tortures. Moreover, after the torture and murder incidents, the Central 610 Office made it clear that neither the labor camp nor the responsible person should be investigated or blamed for the tragedy. It was precisely because of this statement from the Central 610 Office that after Falun Gong practitioners Zhang Yali, Zhang Baoju and Guan Ge were tortured to death by "Strait Jackets," the Female Forced Labor Camp of Shibalihe, Henan province and the evildoing police in the labor camp haven’t been subjected to any investigation or punishment to date." [57]

In addition, the two labor camps mentioned above also used brutal torture methods to force Falun Gong practitioners to "transform" (or renounce their belief in Falun Gong). A former labor camp detainee, Japanese female practitioner Yoko Kaneko, said in her testimony, "This labor camp [Beijing Women’s Reeducation-Through-Labor Camp] was completed in March 2002. We moved from Xinan Forced Labor Camp to this labor camp. Much money had been spent in its construction. On the exterior it looks like a villa, complete with computer room, library, and fitness equipment. Each room holds twelve inmates. … However, all this appearance was to cover up the persecution against us. How could the outside world know that besides torture we also had to labor in drudgery? A practitioner is isolated in a room during forced brainwashing sessions so as to prevent others from knowing the kinds of intimidation and torture that are inflicted upon you. Police also used drug addicts to monitor Falun Gong practitioners, to deprive us of sleep, and to abuse us in whichever way. We had to get up at 3:00 a.m. each day to knit sweaters, scarves, hats, gloves and other export products." So far, this labor camp has moved twice in cooperation with the suppression. The overall cost far exceeded expenditures before the suppression.[58]

According to an investigation report by the U.N.,[59] many Falun Gong practitioners have been detained in the Masanjia Forced Labor Camp in Shenyang City, Liaoning Province. They are forced to work for 15 hours a day, to maintain awkward positions for long periods of time (for example, stooping with head facing the ground, standing against the wall, crouching in a small area around 0.3 meter square in size, or maintaining a half-crouching posture with two arms stretching forward). They are beaten, shocked by electric batons, and locked in a small 2.4 x 1 meter cell with hands cuffed to the door for one to two weeks. They are deprived of sleep. Some practitioners are hung up with their four limbs stretched in different directions. Qi Zhenrong, for example, is a 41-year-old female practitioner. She was stripped naked and shocked with electric batons. In September 2001, she participated in a hunger strike with 130 practitioners to protest the over-term detention. Her hunger strike lasted more than forty days, to the point where her life was endangered. She was then sent to the labor camp hospital, only to suffer additional cruel tortures.

1.1.5 Handsome Rewards for Persecutors

The Second Women’s Branch of the Masanjia Forced Labor Camp, which was established at the end of October 1999, belongs to China’s Ministry of Justice and is specifically used to detain and persecute female Falun Gong practitioners. Previously, the staff in this branch of the camp numbered less than ten, including the guards. Currently, there are one hundred police officers working there and 1,500 Falun Gong practitioners detained there. The police get paid twice per month, and enjoy very good fringe benefits.[60]

In October 2000, at the Masanjia Forced Labor Camp, female Falun Gong practitioners were stripped naked and pushed into the cells of male inmates. This type of torture has caused the death of at least five Falun Gong practitioners, mentally traumatized seven practitioners, and disabled many others.[61] The Ministry of Justice of China rewarded Su Jing-Head of the Second Women’s Branch, with 50,000 yuan (US$ 6,041) and gave 30,000 yuan (US$ 3,624) to Shao Li, the deputy head of the Branch, for their active participation in persecuting Falun Gong practitioners. All the labor camp division leaders were given monetary awards as well. In addition, Su Jing was awarded the honorary title of Second Grade Heroic Model in National Law Enforcement and Administrative Systems.[62] The Ideology Education School in the Masanjia Forced Labor Camp under Su Jing’s supervision received the Second Grade Group Award. Luo Gan, Liu Jing, and other principal persecutors of Falun Gong personally visited Masanjia Forced Labor Camps many times. The Ministry of Justice of China also allocated a special fund of one million yuan (US$ 120,824) to Masanjia to "improve" its environment.[63]
Besides Masanjia, Shenyang City’s Dabei Prison, the Dalian City Forced Labor Camp, the Zhangshi Forced Labor Camp, and the Longshan Forced Labor Camp, among others, have become notorious for their cruel methods of torture used on Falun Gong practitioners. It was reported that at the end of 2001, the Longshan Forced Labor Camp in Liaoning Province was rewarded with 400,000 yuan (US$ 48,329) for its active role in the persecution, while the Zhangshi Forced Labor Camp was awarded 50,000 yuan (US$ 6,041). The guards there openly said, "Without the money, who would do such wicked things?"[64] On May 7, 2004,  the Deputy Chief of the second division of the Zhangshi Forced Labor Camp, Tang Yubao, and team leader Jiang Zhaohua repeatedly shocked Gao Rongrong with electric batons for six hours, from 3:00 pm to 9:00 pm, and caused her face to become severely disfigured (See Figure 1).[65] By October 2004, 121 Falun Gong practitioners were confirmed to have been tortured to death in Liaoning Province.[66]

Falun Gong practitioner Ms. Gao Rongrong was an accountant at the Luxun Fine Arts College in Shenyang City.
May 7, 2004: Gao Rongrong’s face is covered with burns from electric baton shocks. The photo was taken ten days after she was tortured.

Figure 1. Gao Rongrong was disfigured in the Longshan Forced Labor Camp.

1.1.6 Huge Rewards Offered for Reporting Falun Gong Practitioners to Police

In order to prevent Falun Gong practitioners from appealing in Beijing and in order to meet the "transformation quota (percentage of successful transformation rate)," the governments at various levels in China have adopted the methods of offering huge rewards to encourage related personnel to arrest and detain Falun Gong practitioners. According to incomplete statistics, 830,000 Falun Gong practitioners who went to Beijing to appeal for Falun Gong had been arrested and booked.[67]

In a public notice from the Administrative Office of Tianqiao Street in Beijing (Figure 2), it was stipulated that one could get 500 to 1,000 yuan (US$ 60 to 120) for keeping track of or reporting a Falun Gong practitioner who tried to go to Beijing to appeal. Disregarding the expenditure by authorities in various regions to block, search, and return those practitioners who went to Beijing, the reward money alone for the practitioners arrested and booked would total in the tens of billions of yuan (billions of US$).

Open Letter to Falun Gong Practitioners

In line with the instructions of the administration and management committees of the development region, we shall intensify the crackdown on the evil organization Falun Gong. Those who still stubbornly insist on practicing Falun Gong after long-term and patient persuasion and reformation, who still keep in touch with one another and share their experiences, and who still go to Beijing to cause trouble, will be dealt with relentless blows. The punishment measures are as follows:

  • A fine of 5,000 yuan ((US$ 604) will be imposed on each trip to Beijing, plus 3,000 yuan (US$ 362) of other fees; the total fine is 8,000 yuan (US$ 966).
  • The fine must be paid up within 5 hours of receiving the fine notice, otherwise, other properties, including family house, will be taken as mortgage.
  • Those who go out without reporting to the department concerned, and those whose whereabouts are not known, will be punished in the same way as going to Beijing.
  • Reward those who monitor and report practitioners with 500 yuan to 1,000 yuan (US$ 60-120).

               Official seals of Tianqiao Neighbourhood Committee and Tianqiao Police Station

                    May 2000

Figure 2. Open letter posted by the Administrative Office of Tianqiao Street in Beijing

According to a notice inside the public security system, the central government would criticize the governors and heads of CCP committees of whichever province had a large number of practitioners going to Beijing to appeal. Since the administrative leaders in many provinces have no way to prevent practitioners from going to Beijing to appeal, they try to deceive the central government so as not to be criticized. They do this by colluding with the policemen in Tiananmen Police Station in Beijing, offering money and bribes to buy "the registration of practitioners who have come to appeal" in order to completely destroy the "evidence." Thus, the more registrations they buy from the Tiananmen Police Station, the fewer practitioners from their province are reported to the central government.[68] Consequently, millions of practitioners are not in the formal registration system. The costs for bribery and related expenditures are enormous.

Wang Yuzhi was a Falun Gong practitioner from Heilongjiang Province. She escaped to the United Arab Emirates to evade the persecution. Thanks to the Canadian Government’s effort to rescue her, she is now living in Canada. In October 2002, the police ordered her arrest, offering a reward of 50,000 yuan (US$ 6,041) because she spread flyers that explained the facts about Falun Gong. On July 16, 2001, when she went to her bank to withdraw some money, the bank personnel reported her to the police and she was arrested. She suffered from brutal torture in the forced labor camp and almost went blind.[69]

According to WOIPFG investigations,  Heilongjiang Province is one of the provinces where the persecution of Falun Gong is the most severe. By October 10, 2004, 156 Falun Gong practitioners from Heilongjiang Province were verified to have died as a result of the persecution. This placed Heilongjiang Province in first place in China in terms of the number of verified deaths of Falun Gong practitioners.

1.1.7 Neighborhood Surveillance

China has also spent a fortune in encouraging its citizens to keep track of Falun Gong practitioners in their neighborhoods and report them to the police. In the city of Mudanjiang, in Heilongjiang Province, community administrative office staff members have been actively following the order from the "610 Office" in the city and continuously monitor and harass Falun Gong practitioners. The Mudanjiang City "610 Office" appropriated money to hire specialized personnel, so-called "security staff," in all community districts to keep track of Falun Gong practitioners. During all holidays, or "sensitive days," the neighborhood directors and local police have gone to the homes of all blacklisted practitioners, using fabricated reasons as the basis for harassing the practitioners and their families. In 2003, the "610 Office" funded all community administrative offices 200 yuan (US$ 24) a month to hire "security staff."  The sole responsibility of "security staff" was to monitor Falun Gong practitioners in the community and post a "reward notice" on the community gate. Whoever reported a Falun Gong practitioner would receive 500 to 1,000 yuan (US$ 60 to 120) as a reward.[70] Similar reward policies can be found in both urban areas and rural regions all over the country. The "reward notice" encouraged neighbors and even friends and family members to report practitioners to police.

1.2 "Black Hole 2": Large Amount of Fund Funneled From Various Organizations of Government, Institutions, and Business Was Applied to the Persecution

1.2.1 Large Amounts of Money Allocated for Establishing Brainwashing Programs

Wu Xiuping, the chairwoman of the Beijing’s Women’s Union, stated on her speech during the National People’s Political Consultative Conference on January 25 2002 that the Government spent an average amount of approximately 5,000 to 6,000 yuan (US$ 604 to 725) "transformation" money on each individual Falun Gong practitioner.[71] The Government also required that each Falun Gong practitioner’s workplace contribute 4,000 to 5,000 yuan (US$ 483 to 604) as a management fee for "transforming" practitioners. The majority of Falun Gong practitioners (see example cases below) were sent to brainwashing classes, often multiple times in an attempt to force them give up their belief in Falun Gong.

The Haidian District of Beijing, for example, allotted 3.6 million yuan (US$ 0.435 million) for brainwashing classes (formally titled the "Beijing Legal Education Training Center") in June 2001.[72] According to inside data from the Beijing Department of Treasury, from January to October 2001, the department allocated 32 million yuan (US$ 3.86 million) to projects related to "dealing with Falun Gong." The expenditure by the Shapingba District Department of Treasury in Chongqing City to "deal with Falun Gong" was 2.02 million yuan (US$ 244,064).

Daqing City’s Hongweixing Brainwashing Center, officially called the "Legal Education School," was jointly created by the Daqing Municipal Government, Daqing Oil Ltd. and the Daqing Oil Management Bureau in November 2002. The Daqing Oil Management Bureau and Daqing Oil Ltd. invested over 2 million yuan (US$ 241,648), which was used to purchase vehicles and electric monitoring equipment for persecuting Falun Gong practitioners.[73]

Throughout the country, countless brainwashing classes have been held by government organizations, street administrative offices, schools, and businesses. The establishment of "Assistance and Education" groups and the creation of the "Contract and Guarantee" policy (a system that each practitioner was supervised by one or more appointed personnel throughout the brainwashing/transformation process) have been implemented at all levels of government to set up brainwashing classes under the disguised name of "Legal Education Classes." In the city of Tianjin, 3,546 such "Assistance and Education" groups were set up.  In Luohe City of Henan Province, the authority there set up 151 such groups, organized 289 forums in a variety of ways and 3,500 people were forced to attend.[74]

Brainwashing classes have spread to four levels nationwide —from province to city, county, and township. In Shandong Province, for example, according to incomplete statistics, at least nine Falun Gong practitioners died while attending brainwashing classes, and many others sustained wounds and became handicapped. Seventeen local townships and thirty-one county-level cities in Shandong Province launched widespread brainwashing classes. A few cities sent practitioners to adjacent brainwashing classes or the Shandong Legal System Training Center (that is, the brainwashing center based next to the Wang Village Labor Camp) or directly to labor camps. For example, the "610 Office" in Qingdao City opened a Legal System Education Center (brainwashing center) at Mingxia Road in Qingdao City. Under Qingdao City's jurisdiction, the cities of Jiaozhou, Jiaonan, Jimo, Pingdu, and Laixi have also established brainwashing classes.

At the city level, brainwashing classes have expanded to districts and townships. For example, in Weifang City, the city that has the highest persecution cases in Shandong Province, seven brainwashing classes have been established in Weicheng District. They are Weicheng District Chengguan Street Office (located in the employee dorm of the Chengguan Street Office, and the place where Ms. Chen Zixiu died); Yuhe Town brainwashing class (located at the Yuhe Town Law Office, where Xuan Chengxi died); Wangliu Town brainwashing class (located at the Wangliu Adult Education Center); Junbukou Town brainwashing class (located at the Junbukou Village Member Committee); Xingbu Town brainwashing class (located at the Xingbu Town Law Adjustment Center); Fushan Town brainwashing class (located at the Fushan Town Senior House); and the Daliushu Town brainwashing class (located at the Daliushu Town Committee.)[75]

The huge expenditure in establishing and operating brainwashing classes is evident from the case study of Chaoyang District in Beijing. According to CCTV International’s report from October 27, 2001, in the ten months previous to October 27, 2001, in Bejing’s Chaoyang District alone, 259 "study classes" were held to "educate and transform" Falun Gong practitioners.  An estimated one thousand communist party members participated as teaching aides.[76] According to the "transformation" statistics from the same report, calculations show that in this short time, in one of the Beijing districts, the government spent 4 to 5 million yuan (US$ 0.483 to 0.604 million). This figure does not include the salaries paid to the one thousand party members who participated as teaching aides, nor does it include the various official business fees, subsidies, and other fees.

As there are eighteen districts in Beijing, it is safe to assume that the amounts of money spent to "transform" Falun Gong practitioners over the last five years in Beijing alone have been massive. And as there are countless administrative districts across China, the total amount spent to brainwash Falun Gong practitioners across China has been astronomical.

In September 2001, the abandoned Division of Interrogation building of Jinan City’s Department of Public Security was completely renovated. A new signboard outside the building announced the establishment of "Jinan Legal Education Center." The now retired former director of the Jinan Forced Labor Bureau once revealed the renovation cost alone was more than two million yuan (US$ 241,648). (Clearwisdom

1.2.2 Expenditures from "Psychiatric Treatment" Type Systematic Abusive

Since July 20, 1999, persecuting Falun Gong practitioners by subjecting them to "psychiatric treatment" has taken place throughout the country. In at least twenty-three provinces and autonomous regions, including Beijing, Tianjin, Shanghai, Chongqing, Heilongjiang, Liaoning, Jilin, Hebei, Henan, Shandong, Shanxi, Hubei, Hunan, Jiangsu, Zhejiang, Guangdong, Guangxi, Fujian, Anhui, Sichuan, Xinjiang, Qinghai, and Ningxia, several thousands of mentally healthy practitioners were sent to mental hospitals, psychiatric divisions of hospitals, and drug rehabilitation centers. 83% of the mental hospitals investigated by WOIPFG admitted that they had "held" Falun Gong practitioners "for treatment." In addition, more than half of the hospitals admitted that the detained practitioners didn’t have any psychiatric symptoms and that the hospitals only held practitioners in an attempt to transform them.[77]

Upon investigation, those mental hospitals claiming to have never "held" any Falun Gong practitioners "for treatment" were alleged covering up the facts. For example, the Mental Hospital of Handan City claimed that no Falun Gong practitioners were "held" for treatment. However, according to one of the cases collected by WOIPFG, a practitioner named Yang Baochun was tortured severely in a forced labor camp, which resulted in both his legs being amputated. He had been held in the Mental Hospital of Handan City for over two years. His case was a well publicized one to the outside world and exemplifies the systematic nature and the severity of the persecution.

Falun Gong practitioners are typically detained in mental hospitals for at least three months. In many cases, practitioners were detained multiple times and some were long-term detainees at mental hospitals. There are cases of practitioners having been detained for over two years. Hospitalization fees and drug prescription fees are huge expenditure. The victims themselves, or their work units, are forced to pay these fees.  Concrete number for the expenditures did not come easily, and investigation is still ongoing to uncover further details, which will be added to this report at a later date.

1.3 "Black Hole 3": State-Run Propaganda Machine Used to Spread Lies and Hatred

Since 1999, all of China’s media outlets have been actively abetting the persecution. When talking to Mike Wallace on the CBS program 60 Minutes on August 15 2000 at Beidaihe government resort, Jiang Zemin acknowledged straightforwardly, "Media should be the mouthpiece of the Party." It was a direct claim that in China, the state-run media is not objective and only serves the needs of political authorities.

After being introduced to the general public in 1992, Falun Gong’s benefits of improved health and outlook quickly attracted millions of people in China. And although practitioners had no political aspirations, Jiang Zemin felt threatened by the practice’s fast-growing number of followers and was jealous of its popularity. To justify persecution, the regime manipulated the state-controlled media into fabricating stories, slanderous material, and false accusations against Falun Gong in order to incite public hatred of the practice.

According to incomplete statistics, since the persecution of Falun Gong began on July 20, 1999, the state-run newspaper People’s Daily published 347 articles to disparage Falun Gong in the first month alone. China’s Central TV station (CCTV) has been actively supporting the persecution and has fabricated numerous news items to falsely accuse and slander Falun Gong. From April 25, 2002 to the end of 2003, programs such as Focus Interview, News, Science and Technology Channel, Viewpoint Weekly Publication, China Diplomacy Forum, TV Critique, China Network and Media Forum and the Life Channel broadcast at least 332 such items. These defamatory programs have been telecast extensively by local media.[78]

There are 2,000 newspapers, 8,000 magazines, and 1,500 TV and radio stations in China. Together, these media outlets constitute a formidable venue for distributing propaganda.

1.3.1 Internet Monopolized by Chinese Authorities

As a media tool, the Internet comes in fourth after newspapers, radio, and TV. It has also become instrumental in the persecution of Falun Gong, being used to control information and subsequently people’s minds both inside China and abroad.

Online news sources such as People’s Daily On Line, Xinhua News Agency, CCTV Net, China’s Central Radio Broadcast Net, China Daily On Line, China International Radio Website, Center of China’s International Internet have all become the Jiang regime’s puppet media in terms of reporting on Falun Gong. According to incomplete statistics, from January 2000 to October 2003, there were 522 articles slandering Falun Gong on the Xinhua News Agency website alone. These reports were circulated extensively on Chinese Internet media both within China and abroad.

On July 24, 2000, Sun Yusheng, the deputy general editor of CCTV, passed down the decision made at the "government monopoly of the Internet" meeting during CCTV’s routine meeting. He announced that the central government supports five major websites: People’s Daily On Line, Xinhua News Agency, China Daily On Line, China International Radio Website, and Center of China’s International Internet, and advocates five additional websites: Oriental Web in Shanghai, Thousand Dragon Web in Beijing, China Youth Net, CCTV Net, and China’s Central Radio Broadcast Net. Sun indicated that there should be no additional promotion for other commercial websites.

From Jiang’s supportive policy favoring the major state-run Internet media, it is obvious that the purpose of the vast investment of technology and funds in these media is to further control them so as to promote anti-Falun Gong propaganda.

1.3.2 Production of Anti-Falun Gong Movies and TV Programs

In the past five years, the Jiang regime has invested money in producing movies, TV series, Chinese traditional operas, and dramas to defame and slander Falun Gong. These programs are broadcast all across the country. The official organization dedicated to suppressing Falun Gong, the Anti-Cult Association of China, has by itself participated in editing 37 anti-Falun Gong movies and TV series. Among them, production of one of the many anti-Falun Gong films, Abyss – Essence of a Cult, was funded by the government, which invested 2.6 million yuan (US$ 314,142) in its production.[79]

Another government-funded production was the 24-program series of TV plays called Life Is Innocent. The average cost of making one play was 200,000 to 300,000 yuan (US$ 24,164 to 36.247). It would cost 4.8 million to 7.2 million yuan (US$ 0.58 to 0.87 million) for the entire 25 programs.

In addition to movies and TV series, the Jiang regime ordered media groups to produce a great number of large-scale artistic performances, Ping Opera performances, dramas, and Beijing Opera performances to slander Falun Gong. For example, in 2001, the Politics and Law Committee of the CCP in Dalian and the Department of Propaganda of the CCP Committee of Dalian jointly presented the Ping Opera "Broken Moon," a large-scale comprehensive show entitled "Life is Beautiful," and the drama "Fallacy in the Sun." The drama "Fallacy in the Sun" was presented 40 times in Dalian in various districts and townships. According to an official report, the Dalian authorities "organized a total of 179 performances of Ping Opera and dramas. The central government and provincial department applauded Dalian’s use of artistic performances to expose and denounce Falun Gong.[80]" It is hard to estimate the huge expenditure in editing these programs and forcibly promoting them across China.

1.3.3 Propaganda Materials Circulated to All Corners of China

At the beginning of year 2001 alone, the official publishing houses in China published more than 60 anti-Falun Gong books. These publishing houses included those affiliated with the Department of Justice, Department of Propaganda, People’s Daily, Popular Science Publishing House, Publishing House for the Masses, Publishing House of Beijing City, Law Publishing House, and so on. In addition, CCTV edited VCDs to include its TV program Focus Interview, which attacked Falun Gong. China International TV Corporation helped to release large quantities of these VCDs.[81]

One can find large-scale exhibitions and anti-Falun Gong display boards all over China. Books, DVDs, brochures, and posters are being produced, printed, and promoted in almost every city and village.

For example, on the day of February 6, 2001 alone, eight million juveniles in nearly 1,000 communities throughout 100 mid-to-large-size cities in China posted over 500,000 propaganda pictures, distributed over 10 million flyers, and held over 200 rallies to defame Falun Gong.  All this was under the close supervision of the Director of the central government’s "610 Office," Wang Maolin; first secretary of the Central Youth League, Zhou Qiang; and the head of the Central Youth League’s Party Secretary Committee, Zhao Yong.[82]

Let’s assume the flyers were printed at the lowest available rates. For 20,000 copies, it would cost 1,050 yuan (US$ 127) for single-sided black and white, 1,150 yuan (US$ 139) for double-sided black and white, 1,750 yuan (US$ 211) for single-sided color flyers, and 2,250 yuan (US$ 272) for double-sided color flyers. For the 10 million flyers used in one day, it would cost at least 525,000 yuan (US$ 63,432), equivalent to the monthly subsidy for 3,000 laid-off workers in China.

The Children’s Publishing House in Hunan Province edited four series of books titled "Advocating Science, Eliminating Superstition" (this is CCP’s typical, official propaganda used to attack Falun Gong) for junior students in elementary school, senior students in elementary school, middle-school students and adults, respectively. The volume of publication was 3.1 million.[83]

Large-scale photo and caricature exhibitions attacking Falun Gong can also be found everywhere in China.[84] Jiang Zemin personally attended some of these exhibitions. In August and September 2000, Xiangtan City in Hunan Province alone held several such photo exhibitions at the city level and county level. Two local organizations—the Association of Science and Office of Civilization—were the sponsors of these exhibitions. Throughout the city, more than 90,000 viewers attended 43 exhibitions at 35 display sites.[85]

1.4 "Black Hole 4": China’s Educational System Becomes Jiang’s Tool for Promoting Persecution

From September 9–21, 2003, at the invitation of the Chinese government, U.N. Human Rights Committee reporter Katarina Tomasevski conducted an investigation into China’s educational situation. Later, she publicized her findings to the media.  According to Ms. Tomasevski, "The budgetary appropriation for education in China is only two percent of the Chinese GDP.[86]" In the U.S., it is eight percent of the country's GDP, and in most other developed countries, the annual investment in education ranges between five and seven percent. Even with such a poor education budget, the head of the Chinese education system still appropriated large amount of money to persecute Falun Gong.

Chen Zhili, the former Minister of Education and the Party Secretary of the Chinese Ministry of Education, actively implemented and promoted Jiang's genocide policy within the education system, and exhausted a large portion of the funds earmarked for education by diverting them towards the persecution of Falun Gong.  Specifically, those funds were used for blocking information access and exchange on the Internet about Falun Gong.  Chen Zhili requested that all higher educational organizations redirect their technological research and development toward Internet monitoring and blocking.

In addition to making concerted efforts to develop new Internet monitoring and blocking software and providing technical support for new Internet monitoring technology, Ministry of Education requested that the educational departments at all levels provide, under the direction of the local Party Committees, various kinds of campus-wide "seminars," performances, photo exhibits, book and art shows, popular science demonstrations, student organization activities, bulletin board displays, posters, videos, and VCDs, as well as student publications that slandered and vilified Falun Gong. School officials and the Ministry of Education have also directed students to demonstrate in the streets and distribute anti-Falun Gong flyers and VCDs.

Figure 3. Anti-Falun Gong photo exhibit on the main
Street in the campus of Beijing Foreign Languages University

By the end of 2002, China had 1.17 million educational institutions, including primary and secondary schools of various kinds, with a total student enrollment of about 318 million. Imagine the cost of holding such large-scale activities to defame Falun Gong in so many colleges and schools.

In addition, Chen Zhili enforced having slanderous material against Falun Gong made into textbooks for elementary and high school students as well as university students.  She ordered entrance exams for colleges and graduate schools to include questions on the Falun Gong issue.  These questions are always defamatory and indicate how the education system is used to brainwash teachers and students. [Please add a footnote with the source? It would be helpful to cite a source for the facts you stated here – that she ordered exam questions… otherwise, it comes across as an unfounded accusation.]

Using colleges and/or schools to forcefully instill hatred and hostility towards Falun Gong is a standard brainwashing technique.  Students were forced against their own consciences to participate in the "Million Signature" activity (a public "anti Falun Gong" signature collection activity orchestrated by the government to counteract against signature collection by Falun Gong practitioners overseas). This was on top of motivating families to get involved in the anti-Falun Gong movement.  All these activities literally integrated the persecution of Falun Gong into every cell and fabric of the society.[87]

On July 19, 2004, Chen Zhili was sued in Tanzania during her visit to this African country. She was charged with "conducting the torture and killing of Falun Gong practitioners within the Chinese education system."[88]

1.4.1 How Much Does the New Wave of Persecution Cost?

In early 2004, when it was difficult to sustain the persecution, an "Anti-Cult Education and Demonstration Movement" targeting Falun Gong was initiated throughout China. The definition of "cult" in China is very broad, encompassing such mainstream groups as the Roman Catholic Church, the Orthodox Catholic faith, many Protestant faiths, traditional Tibetan Buddhism, and many others.  But the brunt of the attacks on spiritual groups has been borne by people who practice Falun Gong. The persecution is a new, systematic, political movement that has been well-documented, purposely programmed and elaborately planned by the Jiang Zemin regime since its suppression of Falun Gong began in July 1999. Directly under the Jiang regime’s manipulation, the Central 610 Office, Department of Organization, Central Civilization Office, Department of Education, Department of Public Security, Department of Agriculture, Central Committee of Youth League of CCP, and Chinese Association of Science are the eight sponsors of the movement. CCP committees at all levels have set up dedicated working groups and trained specialists. Supervisory departments are supposed to oversee the implementation of the activities of their respective subordinate units. The major activities of this new round of movement include photo exhibitions, organizing students to watch propaganda movies and videos, mobilizing students to hand out propaganda VCDs and flyers on streets, and so forth.  The movement covers both rural and urban areas, all colleges, high schools, primary schools, and neighborhood communities in various cities. It extends from developed regions like Beijing and Shanghai along the coastal areas to the construction regiments in less developed areas like Xinjiang Province. The costs for printing the propaganda materials for this movement were paid for by the central government and partially by local funds on a nationwide level. For example, in the West Hunan Autonomous Region, in addition to the free materials donated by the central government, the local government itself spent 200,000 yuan (US$24,164) in the printing of additional materials.[89] The total printing cost for the entire nation is impossible to calculate.

1.4.2 Money Allocated to Establish Anti-Falun Gong Organizations and Fund Researcher

To fuel the anti-Falun Gong campaign taking place all over China and to mobilize the general public in this campaign, Jiang’s regime has allocated a large amount of funds to research organizations. Their objective is to provide a theoretical basis for persecuting Falun Gong practitioners.

For example, in 2001, researchers at the Social Science Institute of Sichuan Province finished a report on "recommended policy" against Falun Gong. "It has received high-level attention and further instruction from major leaders in the provincial Party Committee." "Experts and scholars from the institute have also participated in the investigation activities organized by the provincial Party Committee ‘610 Office.’ They assisted the police and judicial departments of the city and province in doing a large amount of work and have played an important role. They even wrote articles in the newspapers, gave speeches to the public and private enterprises, and received high praises." "Since 2001, the institute has received one million yuan (US$ 120,824) in research funds from the provincial Party Committee and government for major programs."[90] In Beijing, national social science research fund-supported programs conducted by work units under city government included the "Research of Falun Gong Phenomena in the Beijing Area" program managed by the Beijing City Party Committee and its "610 Office."

High-ranking officials in the Chinese government and the Communist Party who have backgrounds in theological studies or science initiated the "China Anti-Cult Association." Through the participation of the government and its media, and by taking advantage of its members' backgrounds in religion or science, the association has been "justifying" the Chinese government's persecution of Falun Gong.  The association suggests persecution measures to the Chinese government, fabricating anti-Falun Gong propaganda, and directly participates in numerous forms of persecution, including "transforming" Falun Gong practitioners.

Japanese practitioner Yoko Kaneko had been tortured in a forced labor camp in Beijing for over one year. She testified at the UN Human Right Convention on April 6 2004 that one of the brainwashing video programs she was forced to watch was produced by "China Anti-Cult Association," in which Wang Yusheng, the deputy director and secretary-general of the association, summarized the methods of brainwashing to transform Falun Gong practitioners.  ( 

According to Wang Yusheng, 24 Anti-Cult associations have been established across China as of October 2003 and seven other provinces and autonomous regions are actively making preparations for them. Their main function is to use propaganda to defame Falun Gong. (Wang Yusheng appointed as a consultant to Qinghua University Anti- Cult Association)

The Beijing City Scientific Committee once allocated 1.1 million yuan (US$ 132,906) to set up the Beijing City Anti-Cult Association and support its propaganda activities. (WOIPFG Report 2004-03)  

Since the founding of the "China Anti-Cult Association" in November 2000, the national and local associations have held about 1,000 exhibitions, given about 1,000 reports, lectures and forums, and edited 37 movie and television productions. Up to 2004, anti-cult associations are still being continuously set up in various regions. Through Chinese embassies, the associations have held anti-Falun Gong picture exhibits in Switzerland, Singapore, Korea, The Hague in Holland, and Paris, France. Apparently, they have exported their hate propaganda overseas.

Starting from 2001, the "China Anti-Cult Association" has attended the United Nations' Human Rights Commission meeting in Geneva for the past four years, with Wang Yusheng being the leader of the delegates. During the meeting, Wang has held anti-Falun Gong forums in the conference hall for the Chinese delegates to the U.N. and in local Chinese communities. He has also held press conferences to instill lies and hate propaganda to overseas journalists and organized anti-Falun Gong photo and book/multi-media exhibitions in front of the main gate of the U.N. (See Figure 4).[91]

1 1
Figure 4. Propaganda exhibits against Falun Gong, held at the United Nations.

On the afternoon of April 16, 2004, Swiss attorney Ms. Boone announced a lawsuit against Wang Yusheng. Seven lawyers agreed to accept this lawsuit filed by seven Falun Gong practitioners. Attorney Ms. Hayard told the press: "The Geneva State procurator has accepted this lawsuit."

1.5 "Black Hole 5": Billions Invested in Comprehensive Monitoring and Surveillance System

Over Six billion yuan (US$ 724.94 million) has been spent on the "Golden Shield Project" that has violated human rights and served as a gigantic, comprehensive monitor system to block Falun Gong’s real situation in order to maintain the suppression of Falun Gong.

1.5.1 "Golden Shield Project" Has Consumed Six Billion Yuan

On September 26-27, 2002, one of the Ministry of Public Security’s "Golden Shield Project" group leaders, Li Runsen, explained, "The Golden Shield Project is ‘an important project dedicated to cracking down on Internet criminals and ensuring Internet security. It has played an important role in the battle against Falun Gong practitioners and other hostile elements."[93]

In essence, the "Golden Shield Project" is an Internet monitoring system covering the entire territory of China. It is capable of monitoring all kinds of information exchange over the internet and discovering oversea websites which need to be forbidden (i.e. filtered) according to the criteria set by the Chinese authority[94]. "Golden Shield Project" has been widely used to monitor and persecute Falun Gong practitioners. Among the objectives of the "Golden Shield Project" is the building of a strong "Internet police force." The number of Internet police officers who monitor the flow of information on the Internet has reached several hundred thousand. The cost is an astronomical figure when their salary and hardware/software expenditure are considered.

Development of software that will intercept information and prevent facts about Falun Gong from being spread: According to the Software Industry Project Information web site of Shenyang City, Shenyang Situo Network Technology Ltd. has invested one million yuan (US$ 120,824) to develop the "Technology for Illegal Internet Information Recognition and Filtering Based on NLP." The function of this technology is to live-monitor information exchanged over the Internet and immediately report the user to the police from backstage. It has been widely used in personal PC, local network, websites and Internet monitoring departments, and thus directly involved in the persecution of Falun Gong. Universities and research institutions in China have also participate in the development of "Golden Shield Project." Chen Zhili, the former minister of Department of Education, called on universities to strengthen the research in development of Internet blockage technology and focus on developing new software and hardware to block information flow on internet, so as to provide advanced technology to block all "Falun Gong" related information on the Internet.

Figure 5. Chinese Police Enforcing Censorship Inside Internet Café

On February 18, 2003, a piece of news came out from a Chinese official media China News Net: "Acoustics Institute of Chinese Academy of Science has developed a ‘content inspection system for Falun Gong.’" The report said that the web technology developed by the Acoustics Institute also carried web filtering function, which has provided technical expertise for a three-level monitoring and filtering system of PC, Internet and government. Once a PC user decides to visit a web page containing Falun Gong related information, the system would filter the request and in the meantime report the incident to the web patrol. The web patrol police would then report to the related government office, which in turn starts a thorough monitoring process.[95]

According to an October 26, 2003 report, "Marketing Section Head Liu Yuzhu of the Culture Ministry revealed a nation-wide electronic service construction for politics named ‘web café internet monitoring system’ and mentioned that such kind of system has already been completed in Sichuan and Guangxi provinces. Before 2005, a national information control system would be formed in the culture area."[96] Since April 2001, police departments from all over the country have joined other departments to carry out a thorough inspection of web cafés, with emphasis on the blocking of production, copying and distribution of Falun Gong truth-telling information on the Internet.[97]

According to incomplete statistics from WOIPFG, 108 Falun Gong practitioners have been confirmed to have been imprisoned, sent to labor camp or subjected to torture because of internet access. Three of them with known identities (names have been identified) have been persecuted to death. They are Li Changjun (35 years old, from Wuhan, Hubei province), Chen Qiulan (47 years old, from Daqing, Heilongjiang province) and Bai Xiuhua (Acheng, Heilongjiang province).
Li Changjun,[98] a former employee of Wuhan Tax Bureau, Hubei Province, was born in 1968. He received his Master’s degree from Huazhong University of Science & Technology. On May 16, 2001, Li Changjun and his fellow Falun Gong practitioners were arrested by police when they were downloading Falun Gong materials from the Internet. (All the other six practitioners arrested at the time were also holding Master's degrees or even doctorates.) After more 40 days of brutal torture, Li died at 10:08 p.m. on June 27.
When his family saw his body later, they found it emaciated and seriously disfigured. His face, neck, and many other areas of his body had turned purple and black from bruising. His hands were held tightly into fists, his teeth were deformed, and his back was so severely burned that it looked as though the flesh had been cooked. It was a truly tragic sight.

1.5.2 Dedicated Personnel Hired to Monitor Wire Poles 24 Hours a Day to Block Falun Gong Programs

At around 8 p.m. on March 5, 2002, eight channels on Changchun's cable television network began broadcasting Falun Gong informational programs such as "Falun Dafa Spreads Throughout the World" and "Self-Immolation or Deception?" The broadcast went on uninterrupted for forty to fifty minutes. Changchun’s cable television network has 300,000 subscribers and millions of audience. Many Changchun citizens came to know the truth of Falun Gong. This incident sent shockwaves throughout Mainland China.

Jiang Zemin, who initiated the persecution of Falun Gong, felt extremely frightened. He issued a secret order "Kill them without pardon." Public security personnel in Jilin province went all out to murder those involved Falun Gong practitioners. Five thousand Changchun based Falun Gong practitioners were arrested; at least six practitioners were beaten to death during the "big capture," 15 practitioners were sentenced to 4 to 20 years of imprisonment. Liu Chengjun, the primary practitioner for the heroic interception, was captured and severely persecuted in prison. On December 26, 2003, he died after nine-month’s inhumane torture. It has been verified at least eight practitioners who were involved in the tapping in cable TV were tortured to death. They were: Liu Chengjun, Liu Haibo, Hou Mingkai, Li Rong, Liu Yi, Shen Jianli, Li Shuqin and an anonymous practitioner.

The "cable TV insertion" was the result of heroic act of Falun Gong practitioners in Changchun. They took great risk to expose the persecution of Falun Gong practitioners in China, to protect the basic right of Chinese citizens of knowing the true information.

In 2002, from March to June, to prevent practitioners from inserting Falun Gong video program into Cable TV program for a second time, the city of Changchun mobilized a great number of cadres and hired more than 800 personnel to monitor all the electric wire poles 24 hours a day. The sum of such labor cost was over one million yuan (US$ 120,824).

1.6 "Black Hole 6": Extending the Persecution Overseas

1.6.1 Spending Billions to Buy Over and Control Overseas Media

To attack the overseas Falun Gong groups and their activities for opposing the persecution, Jiang spared no expense to buy in overseas Chinese media. On November 21, 2001, Jamestown Foundation in the U.S. published a report titled "How Chinese Government Attempted to Control Chinese Media in the U.S." on "China Brief."[99]  This article exposed the main strategies Chinese Communist Regime took to intervene in overseas Chinese media, which included control the stocks by investment, promising commercial profit inside China, purchasing time period of broadcasting and reserving space on newspaper for advertisement from independent media as well as providing programs and information to them. Chinese authority arranged to have former government staff work at these independent media and these staff helped to play an important role as an inside employee.

According to the investigation, Chinese official propaganda machine has implemented a blockage policy on most of overseas media. But Sing Tao Daily and China Press mentioned in Jamestown Foundation report, as well as Les Presses Chinoises and others are approved Chinese media by China. According to incomplete statistics, more than 320 articles slandering Falun Gong have published on China Press in New York between July 20, 1999 and July 2002. Not long, those articles appeared on all major Chinese official newspapers and web pages, widely re-printed by media inside China and became an important part of anti-Falun Gong propaganda, to prove that the crackdown has obtained "international support", so as to further drive the persecution in mainland China. Considering strict censoring in Chinese propaganda system, an ordinary oversea report would be hard to appear on the official media without special "approval". We would like to point out specifically the Les Presses Chinoises in Canada. It has not only re-printed large amount of articles slandering Falun Gong from China, its own articles defaming Falun Gong was also quoted by Chinese official media in the shortest time. At present, the Les Presses Chinoises libel case is in the final stage[100].

Influenced by the slandering and hate propaganda of Falun Gong from CCTV4 and other Chinese oversea media, tempted by the economics interests and ordered by the Chinese embassies and consulates abroad, violent attacks of oversea Falun Gong practitioners have happened in places of North America, such as Huston, Chicago, New York and Canada.

For example, Liang Guanjun is the chairman of the New York Chinese United Association. He has interfered and made troubles many times with the legal activities of Falun Gong practitioners in New York. He has spread the hate propaganda against Falun Gong among local communities in many occasions. China News Net reported: "On April 21, 2001, about 100 members of New York Chinese United Association contended face to face with Falun Gong on the six sites along their parade route."

Around 10pm on June 23, 2003, an ill-intended beating case took place in front of the Yidong Restaurant in New York City Chinatown. Led by the New York Chinese United Association Chair Liang Guanjun, a group of people beaten up and injured several Falun Gong practitioners. Liang was arrested on the charge of "3rd degree assault"[101].

On August 16, 2002, the Canadian Radio Standard Committee (CRSC) issued a ruling to the complaint regarding the Chinese City TV Station in Canada’s re-broadcast of a murder case report from CCTV. The verdict pointed out that the re-broadcast of the CCTV report linking a murder case in China with Falun Gong by the Chinese City TV Station on December 16, 2001, has violated the "Professional Ethics Guideline" and the "Guideline on Violence" created by CRSC, as well as four regulations in the "Media Professional Ethics Guideline" from the Radio and TV News Chief Editor Association[102].

On September 25, 2000, CCTV9 started to broadcast. Together with CCTV’s Chinese international channel (CCTV4), their programs have reached audiences all over the world. In the beginning, only 8 satellites were used to cover 98% of continents and oceans. But now, the programs on CCTV4 and CCTV9 rely on 37 satellites for global coverage[103]. Is it really a necessity? And how much money have they spent?

1.6.2 A Variety of Propaganda Materials and Activities Overseas

Figure 6. Chinese Ambassador in France introducing photo exhibits to personnel in various circles in France and Overseas Chinese in France
Photographed by Wei Zhong, ChinaNews Correspondent

All varieties of propaganda materials have been manufactured to slander Falun Gong and incite hatred, including books, many kinds of pamphlets, and VCDs. Overseas Chinese Communities, libraries, schools and bookstores have become the destinations of the slanderous materials.

A large number of high quality printed pictures and posters that viciously slandered Falun Gong were sent to the Chinese embassies and consulates all over the world to set up large-scale exhibits in Canada, U.S., Italy, Switzerland, Austria, the Netherlands, Russia, Belgium, France, Germany, South Korea, Thailand, Indonesia, Singapore, Japan, Australia and New Zealand.

They sent out hate-filled propaganda booklets as "official diplomatic letters" to every level of government, officials, media and non-governmental organizations in every country[104].

Since the suppression of Falun Gong started in 1999, Chinese authority has been sending delegation constituted by more than 500 people to U.N. human rights meetings in Geneva every year to prevent the motions condemning the human rights abuse in China, especially those motions condemning the persecution of Falun Gong. If we calculate the expenditure based on 1,500 dollars per person for air fair plus room and board, in the past five years, the delegation groups have spent 37.5 million dollars.

1.6.3 Overseas Monitoring Network

In order to suppress Falun Gong practitioners’ activity abroad, a great number of public security staff, internet police and spy agents have been sent overseas to collect overseas Falun Gong practitioners’ personal information and compile blacklist.
"Sadly, the unwarranted and unprovoked aggression against Falun Gong has not ceased, nor is it limited to China. There have been unprovoked attacks in the United States and Falun Gong members have been subjected to a humiliating and denigrating blacklist." US Congressman Frank Fallone said in his speech when House of Representative unanimously passed resolution 304 on October 4, 2004[105].
In June 2002, more than 100 practitioners from different countries planned to go to Iceland to protest during Jiang’s visit to Iceland. Some of them were denied visa; some were denied entry at the customs; some were detained in a temporary detention center; some others were barred from boarding the flight to Iceland by Icelandair in the U.S. or Europe.  It was shocking news to the whole world that dozens of Falun Gong practitioners were denied boarding Iceland airplanes in several airports. According to Iceland media, Icelandair identified practitioners based on the blacklists provided by Chinese authority[106]. 

On June 5, 2003, the Icelandic Data Protection Authority reached the final judgment regarding the justice ministry blocking Falun Gong practitioners from entering the country based on blacklists. The verdict stated: "It was a violation of law that the Justice Ministry of Iceland provided Falun Gong practitioners personal information to Icelandair and that Icelandic Embassies in the U.S., Norway, Denmark, U.K. and France used the blacklists to block Falun Gong practitioners from entering the Iceland.[107]"


Figure 7. Falun Gong practitioners from different countries barred from boarding Icelandair at Paris airport were on hunger strike. Jiang’s ruffian regime coerced Iceland government to prevent practitioners from entering the country during his state visit.

1.6.4 Monetary Diplomacy and Threatening Foreign Officials

Investment and commercial interest has frequently been leveraged by the Jiang regime to meddle in foreign government’s affairs and coerce participation in the persecution of Falun Gong.
House Concurrent Resolution 304 cited the following facts: "over the past 5 years China's diplomatic corps has been actively involved in harassing and persecuting Falun Gong practitioners in the United States;" "journalists have cited fear of hurting trade relationships as the motivation for some local United States officials to recant their support for Falun Gong after receiving pressure from Chinese consular officials;" "San Francisco City Supervisor Chris Daly, after receiving complaints that Chinese officials were intimidating his constituents, authored a resolution condemning human rights violations and persecution of Falun Gong members by the Chinese Government.[108]"
In June 2002, the US House Committee on Human Rights held a hearing on Jiang Zemin regime’s Anti-Human Rights Tactics in the United States[109]. Mayors and City Councilmen from several cities gave testimony to expose how Chinese officials coerced them to annul their support of Falun Gong with threat on economic interest. Randy Voepel, Former Mayor of Santee, CA stated in his testimony "On December 27, 2000, I received a letter signed by Lan Lijun, consul general at the Chinese consulate in Los Angeles, which read, ‘It is our hope that your city, by taking your citizens' interest into consideration, will earnestly consider the request from the Chinese side that no recognition and support in any form should be given to the Falun Gong cult organizations.’" Mr. Voepel said, "I found it to be very intimidating.[110]"

How much treasury money has been spent behind these scandals?

A Wall Street Journal article (Feb 21, 2002) [111]said about the Jiang Zemin regime, "The approach, made variously by letter, phone call or personal visit from a Chinese official based at China's Washington embassy or one of its numerous consulates, tends to combine gross disinformation with scare tactics and, in some cases, slyly implied diplomatic and commercial pressure." Willy Wo-Lap Lam, a CNN senior China analyst of CNN, said in his article (June 18, 2002)[112]: "China Waged ‘Big-Bucks Diplomacy’".

1.7 "Black Hole 7": Corruption Encouraged During the Suppression of Falun Gong

WOIPFG found that through persecuting Falun Gong, Jiang Zemin quickly buttressed and consolidated his power. As a result, Jiang himself and his family became the direct beneficiaries.  During the five years of persecution, Jiang, who gathered the utmost power from China Communist Party (CCP), administration and Peoples’ Liberation Army (PLA) rapidly accumulated overwhelming power for his family members.  Moreover, Jiang looted enormous assets from the country.  In the meantime, Jiang’s followers, government officials at various levels have also benefited from persecuting Falun Gong.  Many of those officials are corrupted and accepting bribes. They were not only able to attain higher-level positions, but also were immune to deserved punishments under the protection of Jiang’s administration. The five years of persecuting Falun Gong are the most corrupted five years in China’s history. 

The majority of Jiang’s followers in persecuting Falun Gong are corrupted government officials and policemen.  Those criminals ruthlessly persecuted kind-hearted Falun Gong practitioners; meanwhile, they brazenly looted national assets and took bribes by all means.  The bribes were then transferred overseas, very often with the help from family members.  In some cases, the bribes were found to be used in trading for power outside of China.

1.7.1 Jiang’s Family Consolidated Power and Looted National Assets Rapidly; Jiang Zemin’s Son Jiang Mianheng Has Participated in the Persecution by Means of Internet Monitoring

Under the protection of Jiang Zemin’s political power, Jiang Zemin’s eldest son Jiang Mianheng was quickly promoted from an average staff in Shanghai Research institute of Metallurgy to the position of vice president of Chinese Academy of Science. Jiang Mianheng has been doing business with the capital funds from Chinese treasury. "With his father's backing, the younger Jiang has built a secretive web of companies and personal relationships that are changing how China connects with the rest of the world." He is now outlining strategy for dozens of corporations and investment banks, "securing funds from Chinese and international investors and putting together deals based on his extensive network of relationships among China’s ruling class." "He has his hands in all these different pots. One of those pots, Shanghai Alliance Investment, a $140 million venture fund headed by Jiang, accounts for 16 percent of the $870 million in total venture capital managed by domestic firms.[113]"  In addition, he is a directorate member of China Network Communications Group Corporation (CNC), Shanghai Auto Group Corporation, Shanghai Airport Group Corporation, etc.

An article by CNN senior China analyst, Willy Lam, on May 7, 2001, confirmed the fact that Jiang Mianheng made a huge fortune by taking advantage of the influence of his father’s power. In his article[114], "Jiang Jr. Emerges From His Father's Shadow," he said, "Jiang Mianheng will be seeing top foreign businessmen, including Taiwan executives".

Since 2000, Jiang Mianheng started to involve himself in "Golden Shield" project. According to a Shi Jie Zhou Kan report in December 2002, Jiang Mianheng announced: "China must establish a nationwide network, independent from Internet." The outline of this project proposed a national cable TV and CCTV video camera network as well as internet monitor system. Currently, China is implementing the plan Jiang Mianheng has mapped out.

Outlined in "Public Security Organs Comprehensive Information Management" in "Golden Shield" project (article nine) was "Managing system to Handle Falun Gong organization[115]". The "Comprehensive Information Management System" for police stations proposed one of the main functions was to deal with Falun Gong practitioners and religious people[116]. Public security organs claimed the "Public Network Information Monitor System" had "played an important role in the battle against Falun Gong practitioners and other hostile elements.[117]"

1.7.2 Jia Qinglin – One of the Most Corrupt Officials Who Persecuted Falun Gong

Jia Qinglin, former (member of the Political Bureau of CCP’s Central Committee, former sectary of CCP committee of Fujian province, former secretary of CCP committee of Beijing), is one of Jiang’s key follower.  He was involved in Yuan-hua case, the biggest smuggling case since the establishment of People’s Republic of China.  Investigation of Yuan-hua case revealed that Jia had accepted bribes worth at least 10 million yuan (US$ 1.2 million). In addition, with a symbolic payment of 12,000 yuan (US$ 1,449), Jia purchased four luxury residential villa, each worth 6.3 million yuan (US$ 761,191). When Jia was the province-level official in Fujian, he removed 1.28 billion yuan (US$ 154.64 million) from a national bond for construction then transferred the capital to his own possession.  Jia’s son, Jia Jianguo (forged name Ren Peng), who now lives in Austria, was charged for illegal money laundering by Australian Anti-Crime Agency.  He was found guilty and sentenced to five years in prison[118].

When Jia was the secretary of CCP committee of Beijing, Beijing was one of the cities that persecuted Falun Gong most severely.  Up to August 21, 2004, at least 27 Falun Gong practitioners from Beijing were tortured to death (excluding practitioners who went to Beijing for appeal from other regions).  The death toll for persecuted Falun Gong practitioners in Beijing is the second highest in the nation, only second to Chongqing.  According to incomplete investigations, a total of 830,000 recorded arrest incidences had occurred to Falun Gong practitioners who went to Beijing for appeal.

As the secretary of CCP Committee of Beijing from 1997 to 2002, Jia Qinglin is directly responsible for torturing, killing and other inhuman treatment of Falun Gong practitioners in Beijing[119].

On September 8, 2004, Falun Gong practitioners in Spain filed law suit against Jia for committing crimes of genocide and crime of torture[120].

1.7.3 Minister of Commerce Who Peculated Private Assets Has Also Actively Persecuted Falun Gong

The Washington Times, Nov 25, 2001 has the story in the Editorial Op-Ed "Free markets in trouble" by Bob Dole, a former US Senate majority leader. Citing the tragic plight of the American Chinese enterpriser, Yang Rong, the former board chairman of China Huachen Group, as a result of doing business in China, Mr. Dole admonished American general public and investors: "The message is clear: Despite all of the progress each country has made, politics is sometimes more important than the rule of law and protection of private property."  Yang Rong, a 48-year-old U.S. permanent resident, was ranked third in "Forbes", 2001, with an asset of seven billion. However, as Mr. Dole revealed in his article[121], "Liaoning Province seized all of Yang Rong's assets in Brilliance China, some US$ 300 million of publicly traded stock, and transferred control of the company from the private sector to provincial bureaucrats. It then seized some US$390 million of Yang Rong's other property. When Yang Rong sought due process in Beijing, Mr. Bo (Xilai) arranged to derail the case by claiming he had committed "economic crimes" without bothering to specify what those crimes were. Agents of the province also ransacked the house of Yang Rong's wife, an American citizen."

Bo Xilai is Jiang regime’s Minister of Commerce. He served as Mayor of Dalian [1993-2001] and Governor of Liaoning Province [Jan 2001-Feb 2004]. During his tenure as Mayor of Dalian and Governor of Liaoning, Bo spared no effort to support Jiang’s suppression on Falun Gong.

The notorious Masanjia Forced Lamp is located in Liaoning Province. In October, 2000, a horrific tragedy happened in Masanjia forced labor camp wherein female Falun Gong practitioners were stripped naked and pushed into male prisoners’ cell. The cruel tortures there have caused the death of at least five Falun Gong practitioners, made seven practitioners become mentally-traumatized, and disabled many others.

The head of Department of Justice in Liaoning province announced in a staff meeting, "the financial investment for crack-down of Falun Gong has exceeded the expenditure for a war."

Bo was sued on April 22, 2004 for genocide and crimes against humanity when visiting Washington DC[122].

1.7.4 The Chinese "Great Escape"

The five years of suppression of Falun Gong has also been the period in Chinese communist history of unprecedented corruption.

The Chinese capital flight during 2000 reached as high as 48 billion dollars, exceeding the 40.7 billion dollars of foreign investment in China the same year.  China has since become a country with No.4 biggest capital flight.  According to incomplete statistics, there are presently more than 4,000 suspected embezzlers on the run, carrying with them more than five billion Yuan (US$ 604 million).  Among them, some have absconded from the country, causing big losses to state-owned assets and severe damage to the society[123],[124].

In the first half of 2003 alone, 8,371 corrupted Chinese communist officials escaped the country; 6,528 corrupted officials are missing; 1,200 corrupted officials committed suicide. These astronomical figures are just "official statistics." These figures would double after adding unexposed or those the statistics left out. They would double again if the escape in the second half of the year is taken into consideration[125].

According to specialists who study transnational crimes, corrupted officials escaping overseas with massive illicit capitals is actually a typical transnational crime of money laundering, which would inevitably create potential threats to financial safety and economic development in China.  

What does this bizarre phenomenon of capital flight mean?  China expert at Princeton University Xiaonong Cheng said, "China is a ‘paradise’ for foreign investors.  In reality, China is also the paradise for its bigwigs to fly capital outside the country.  It is because the former is supporting the latter that the Chinese economy is staying away from disasters.[126]"

Other than capital flight, there is now in China also unprecedented brain drain. In this persecution, Falun Gong practitioners from all walks of life are forced to lose their jobs and even their lives. They are deprived of their rights to serve the country and the society. The economic loss is inestimable. Our investigation revealed those Falun Gong practitioners who are forced to lose their jobs or tortured to death include teachers, engineers, scientists, enterprisers, personnel in legal circles, doctors, soldiers, administrative cadres, students, workers and peasants.

According to the statistics from the US Immigration And Naturalization Services from 1996 to 2002, whether it was the number of applicants (for political asylums or refugees) or the number of approvals, China was ranked No.1[127].  Also the numbers have been on the rise since 1999.  The reason behind this probably cannot be attributed to the fruit of the "reform and opening-up", which the authorities have been trying hard to declare to the world.  The speed of such an increase is a two-digit number almost every year since 1999.  What does the number mean?  It is not hard to tell that this aspect is a proof of the worsening human rights situation on mainland China and a proof of the increasing worry and fear among more and more Chinese citizens toward the degree of deterioration of the human rights in their own country. 


[1] Report on the Financial Expenditures in 1999 and the Draft Budget for 2000 for Qingdao City (Shandong Province)
[2] Two specific rules on Implementation of the stipulation of "investment and expenditure" November 6, 2001.
[3] The Draft Budget for 2002 for Haizhu District of Guangzhou City
[4] Report on the Financial Expenditures in 2002 and the Draft Budget for 2003 for Jin’niu District of Chengdu City
[5] Report on Changes of Financial Budget at Provincial Level for 2001, presented on the 26th Conference of the 9th Session of Jiangsu Provincial People’s Congress (October 24, 2001), by Zhou Guigen, the Minister of Department of Finance in Jiangsu Province
[6] Report on the Financial Expenditures in 2000 and the Draft Budget for 2001 for Nanhai City (Guangdong Province)
[7] Report on the Financial Expenditures in 1998 and the Draft Budget for 1999 for Beijing City
[8] Report on the Financial Expenditures in 1999 and the Draft Budget for 2000 for Beijing City
[9] Report on the Financial Expenditures in 2000 and the Draft Budget for 2001 for Beijing City
[10] Report on the Financial Expenditures in 2001 and the Draft Budget for 2002 for Beijing City
[11] Report on the Financial Expenditures in 2002 and the Draft Budget for 2003 for Beijing City
[12] Report on the Financial Expenditures in 2000 and the Draft Budget for 2001 for Qingdao City (Shandong Province)
[13] Report on the Financial Expenditures from 1997 to 2002 for Dalian City (Liaoning Province)
[14] Report on the Financial Expenditures in 2001 and the Draft Budget for 2002 for Jilin Province
[15] Report on the Financial Expenditures in 2003 and the Draft Budget for 2004 for Jinan City (Shandong Province)
[16] Report from the municipal government of Jinan:  Infrastructure of police stations in the city of Jinan has been upgraded comprehensively
[17] Report on the Financial Expenditures in 2002 and the Draft Budget for 2003 for Jinan City (Shandong Province)
[18] An Overview of the Accomplishments of Executive and Law Enforcement Organs in 2002 in Jinan City
[19] The state of affairs in Mainland China in 2001 and future trends
[20] U.S. State Department’s 2001 Country Reports on Human Rights Practice, issued by the Bureau of Democracy, Human Rights and Labor Affairs on March 4, 2002.
[21] "Calls for end to China's Falun Gong re-education camps"  ABC Online. Jul 4, 2001
[22] Testimony of Zeng Zheng
[23] Speech of Ma Jie, Director of Beijing Xinan Reeducation-Through-Labor Camp—"Learn From Comrade Fang Gong, Fulfill Our Duties Earnestly."
[24] "Creating the Characteristic of Labor Education; Judicial Administration Moving Towards Humanity." April 28, 2004
[25] An overview table summarizing the one hundred major accomplishments of the municipal government of Qiqihaer City. Qiqihaer News Net.
[26] "An Overview of the Accomplishments of Executive and Law Enforcement Organs in Huzhou City" Huzhou Net of Popularizing Knowledge of Law. 
[27] "Work Report of Standing Committee of People’s Congress in Guangzhou City" 


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    [86] "Chinese Government Invited the Wrong Guest?" Asian Times Online. September 24, 2003. By Yan Hua.
    [87] "Investigation Report on the Involvement of Chen Zhili and Other Officials in the Ministry of Education in Persecuting Falun Gong in Education Circle." Report from World Organization to Investigate the Persecution of Falun Gong.
    [88] "St. Louis, Missouri: Practitioners Hold Press Conference Concerning a Missouri Practitioner's Trip to South Africa and Announce Lawsuit against Chen Zhili." Clearwisdom Net. August 1, 2004.
    [89] "Investigation Report on Anti-cult Alert Education" Report from World Organization to Investigate the Persecution of Falun Gong.
    [90] "Catching Up the Pulse of the Time, Shouldering the Historical Responsibilities – Congratulating the 25th Anniversary of Social Science Institute of Sichuan Province." Ba Shu Culture Net. June 16, 2003. By Xiao Xuan.
    [91] "Investigation Report of the Chinese Anti-Cult Association’s Role in the Persecution of Falun Gong" Report from World Organization to Investigate the Persecution of Falun Gong.
    [92] "Catching Up the Pulse of the Time, Shouldering the Historical Responsibilities – Congratulating the 25th Anniversary of Social Science Institute of Sichuan Province." Ba Shu Culture Net. June 16, 2003. By Xiao Xuan.
    [93]"Investigation Report of the Chinese Anti-Cult Association's Role in the Persecution of Falun Gong" Report from World Organization to Investigate the Persecution of Falun Gong.
    [94]"Seven Lawyers Announced Lawsuits Against Chinese Communist Official Wang Yusheng." Epoch Times Online. April 19, 2004.
    [95] "Speech of Li Runsen on the Fourth Plenary Conference of the Science and Technology Committee of Department of Public Security" China’s Security Defensive Organs Net.
    [96] "Department of Public Security Will Establish Monitor System to Ensure the Security of China’s Network."  South China Metropolitan News. June 23, 2002.
    [97] "Institute of Acoustics Made Progress in Decoding Technology for Computer Languages." February 18, 2003. Chinese Academy of Sciences Net.
    [98] "Monitoring Software for Internet Café Has Made its Appearance, Department of Culture Will Be Able to Achieve Real-time Monitor of Computer Content." ChinaByte. October 28, 2003. By Feng Dagang (Journalist)
    [99] Chinabyte Exclusive: Internet Police Affairs. Chinabyte. November 16, 2001. By Yue Shuming.
    [100] "Li Changjun, a Master's Degree Holder From Huazhong University of Science & Technology, Tortured to Death by the Wuhan Police" Clearwisdom Net. August 3, 2001.
    [102] "Final Trial Begins Against Chinese Newspaper Les Presses Chinoises in Montreal for Defaming Falun Gong; Lawyers Make Statements to the Court." Clearwisdom Net. November 12, 2003.
    [103] New York State Assembly Member Requested Investigation On the Beating Incident of Falun Gong Practitioners Being Beaten By Gangs. Minghui Net. September 19, 2003.
    [104] CBSC File: # C01/02-415
    [105] CCTV’s Satellite Living Telecast
    [106] "Investigation Report on the Jiang Regime’s Persecution of Falun Gong Outside China" Report from World Organization to Investigate the Persecution of Falun Gong. May 29, 2004
    [107] U.S. Congressman Pallone: "Sadly, the unwarranted and unprovoked aggression against Falun Gong has not ceased, nor is it limited to China. There have been unprovoked attacks in the United States and Falun Gong members have been subjected to a humiliating and denigrating blacklist." Clearwisdom Net. October 4, 2004
    [108] Richard Powell  "Followers banned for their beliefs"  GreatReporter.Com. February 13, 2002
    [109] "Adjudication issued from Iceland Bureau of Information Protection: It was illegal for the Ministry of Justice to bar Falun Gong practitioners from entering the country based on blacklist." The Epoch Times.  June 10, 2003.
    [110] U.S. House of Representatives Urged Beijing to Stop Harassing Falun Gong. Boxun News. October 6, 2004.
    [111] "US House Committee on Human Rights Holds Hearing about Chinese Government Pressure on US Officials and Harassment of US Citizen Falun Gong Practitioners and Supporters." Clearwisdom Net, June 21, 2002
    [112] "Mayors in the U.S. Gave Testimony at Congress: Chinese Officials Threaten Them to Take Back their Recognition and Support for Falun Gong." Minghui Net. November 30, 2003.
    [113] "Will Chinese Repression Play in Peoria? Beijing's campaign against an "evil cult" comes to America." Wall Street Journal, February 21, 2002
    [114] "China wages 'big-bucks diplomacy" CNN "Eye on China",  June 18, 2002
    [115] "Analysis: ‘The digital prince of China’" Standard IDG. March 6,2001
    [116] "Jiang Jr. emerges from father's shadow" CNN. May 7, 2001. By Willy Lam.
    [117] "A Fatal Attack to Jiang Zemin: Zhu Rongji exposed a shocking crime; it’s already too late for Jia Qinglin to ask for resignation."  Xinsheng Net, February 24, 2003
    [118] Investigation Report on the "610 Office" - City of Beijing, By World Organization to Investigate Persecution of Falun Gong.
    [119] ABC Online: Falun Gong Members Sued Jia Qinglin in Spain.
    [120] "Free markets in trouble"  The Washington Times, Nov 25, 2001. By Bob Dole.
    [121] "Bo Xilai Sued in Washington, DC. Legal Documents Served." The Epoch Times. April 23, 2003.
    [122] "Secrets About Corrupted Officials Who Fled With Capitals, ‘Richling’ Is Studying Abroad With Mansion and Name Brand Car." Hebei Net for Prevention of Malfeasance.
    [123] "China has since become a country with No.4 biggest capital flight." China Economic Times. May 29, 2001.
    [124] China: A Big Market, But A Big Gamble. World Journal Weekly, September 12, 2004.  By Chen Pokong.
    [125]  "China: A Paradise for Capital Flight" By China expert at Princeton University Xiaonong Cheng, October 23, 2002.
    [126] Statistics from US Immigration And Naturalization Services: The Number of the Approved Asylum Applicants.
    [127] (table was at  )


World Organization to Investigate the Persecution of Falun Gong

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