🚔 Fights, theft, forgery · Awareness case
A US Joint-Venture Chairman Smuggled 238 Tonnes of Waste into Shanghai — 10 Years, RMB 500,000 Fine and Expulsion · Yalla China
🤝 Governing law: 关于惩治走私罪的补充规定 第4条；刑法 第3条 / Supplementary Provisions on Punishing Smuggling Art 4; Criminal Law Art 3
In 1995 the American chairman of a Sino-US paper joint venture shipped 16 containers of "waste paper" from the US to Shanghai in the names of two Chinese firms without their consent; they held household and medical waste banned from import, and in 1997 he got ten years, a RMB 500,000 fine and expulsion.
Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
According to the Gazette of the Supreme People's Court: William Ping Chen, a 56-year-old American and chairman of the Shanghai Tongyi Paper joint venture, shipped 16 containers (238 tonnes) from Los Angeles and Oakland to Shanghai between 1 July and 30 December 1995, despite repeated objections from the Chinese managers. Without environmental import approval the boxes sat in port; when opened in May 1996 they held polluting household rubbish and some medical waste. He had used the names of two Chinese companies as consignees without permission. On 13 January 1997 the Shanghai No.1 Intermediate Court sentenced him to ten years, a RMB 500,000 fine and expulsion; on 28 February 1997 the Shanghai High Court rejected his appeal, holding that he acted personally, not on behalf of the company. Basis: Customs Law Art 18 (truthful declaration), Art 4 of the NPCSC Supplementary Provisions on Punishing Smuggling, and Criminal Law Art 3.
🎓 The lesson / takeaway
A chairman's title gives no shield from personal liability; importing banned waste or using a Chinese company's name at customs is serious smuggling. Check environmental licences before shipping any used materials.
🕒 Updated: 16 March 2026