The corruption trial of former appliance tycoon Huang Guangyu, who was once China’s richest man, has finished and a verdict is pending, a lawyer involved in the case said on Friday.

[ . . . ]

Huang . . . built his Hong Kong-listed GOME Group into one of China’s largest electronics and appliance chains with more than 1,200 stores in over 200 cities.

But he was detained two years ago and charged with insider trading and bribing five government officials with 4.56 million yuan (667,000 dollars) in cash and properties from 2006 to 2008[.] (AFP)

This case has garnered a great deal of attention, but only because Huang had been deemed “China’s richest man” by the Hurun Report. Exciting perhaps, but not so much for lawyers who aren’t participating in the case. The defense lawyer and lead prosecutor, of course, are big shots who will benefit quite nicely after the guilty verdict comes in (I’m assuming).

Whenever there is a high-level case like this, there are possible opportunities to effect Rule of Law, specifically public perception of the judicial system. There are three options to consider here:

1. Putting the richest guy in the country on trial will further the concept that no one is “above the law.”

2. Seeing the most successful person in the country taken down will further the cynical notion that corruption is rife and the economic system really doesn’t work.

3. Neither. No Rule of Law implications because there are complicating factors.

Optimist that I am, I am always hoping for #1. Over the years, I have applauded the high-level, highly-publicized show trials of government officials and private entrepreneurs on charges of corruption. Despite my personal feelings about the death penalty, I have even suggested that some of the public executions might even add gravitas to the deterrent effect of enforcement programs.

I have to admit, however, that while certain sectors have indeed been cleaned up significantly over the years (e.g., the judiciary is much better than it used to be), the influx of money into the real estate industry and the rise of new markets (e.g. pharmaceuticals) have enticed a whole new generation of corrupt officials and business people.

So will this case remind the public that not even the richest are above the law? Perhaps some people will receive some satisfaction in the verdict, although that could be explained away as class/wealth resentment. I’d say the benefit here is marginal at best.

What about option 2? Will this case erode confidence in the system? Probably not, but for a rather negative reason. From what I’ve read and from talking to people here about the case, it seems that the prevailing belief is that people like Huang are most likely corrupt simply because of their wealth and position. In other words, Huang wouldn’t have come so far, so fast, without breaking a few rules along the way. The level of cynicism is already so high that this case will not effect perception that much.

This brings me to #3, which I think is where this case leaves us: no Rule of Law implications. In addition to the general cynicism I mentioned above, there is another depressing factor at play here with respect to public perception of this kind of criminal action.

The issue is selective prosecution, and the perception is that Huang would not be facing a jail sentence if he had not upset the wrong people at the wrong time. This again is an indictment of the system and another indication of how deep Rule of Law problems run in this country.

Think about it. If the people I know are any indication of general opinion, the public believes that: 1) Huang got rich because of corruption (i.e. government relationships and exchanges of money); and 2) Huang was taken down because he miscalculated his management of those government relationships.

Therefore, a big show trial like this may not change public opinion at all. That possibility is quite depressing and poses a bigger question: if the government is actively seeking to strengthen the Rule of Law in China with respect to the criminal justice system, how does it go about doing so in an effective manner, and how long might it take?

Some easy questions for the weekend.