Pyramid scheme arrests: China says cases handled in accordance with law

China handles cases involving illegal or criminal activities by foreign nationals on Chinese soil in accordance with the law, said Chinese foreign ministry spokesperson Guo Jiakun on Friday (Sept 4).

He was responding to a question from Singapore state broadcaster CNA.

The Singapore reporter had asked for China's comments on the arrests and the specific charges faced by the 52 Singaporeans arrested in Guangxi for their alleged involvement in pyramid scheme activities.

She also asked for more details on the case such as when investigations began.

Guo said that China handles cases involving illegal or criminal activities by foreign nationals on Chinese soil in accordance with the law, adding that their lawful rights will be  fully protected.

Asked if there has been coordination with Singaporean authorities and if other nationalities are involved, Guo referred the reporter to the "competent authorities".

In a statement on Friday, Second Minister for Foreign Affairs and Second Minister for Home Affairs Sim Ann said that the Singapore police have contacted their Chinese counterpart to seek more information. 

Meanwhile, officials from the Singapore Ministry of Foreign Affairs has provided consular assistance to the 52 Singaporeans and their families. 

"The Singapore Government does not intervene in foreign judicial systems, just as we expect foreign governments to respect our laws and legal process," the ministry stated. 

A Singaporean who was invited on a partly sponsored trip to Guangxi in 2018 to learn about a "business opportunity" told AsiaOne that those interested had to pay a "membership fee" of $30,000 or $50,000 to join the group.

They would then receive three or five slots for each tiered pricing, the 47-year-old told AsiaOne during a recent interview.

The slots allow the person to recruit people, or 'downlines'. 

For every direct or indirect downline who subscribes to the scheme, the recruiter earns a portion of their 'membership fee'.

"The math was that if you paid $50,000 and completed all your slots, you could earn over $1 million," he alleged.

But he found there was no real "product" sold.

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