Organized crime in China is changing shape, creating new risks for businesses as criminal activities move increasingly into cyberspace, commercial relationships and emerging industries.
In July 2026, China launched a nationwide campaign expected to run for about one year. In the first round of nationwide coordinated enforcement, whose results were announced on 10 August, the Ministry of Public Security reported that police had dismantled more than 1,000 criminal groups, arrested over 8,200 suspects and solved more than 5,400 criminal cases.
Enforcement has continued at the local level. In late August, Chongqing police dismantled 31 criminal groups and arrested 220 suspects. Zhejiang police also reported significant results, with 234 criminal groups targeted, 2,901 suspects arrested, 3,735 cases solved and assets worth more than CNY 47.8 million seized. The operations targeted both traditional criminal groups and newer forms of crime, including online predatory-loan schemes, coercive debt collection, fraudulent merchant claims, extortion and forced transactions.
On 28 August, courts across China handed down first-instance verdicts in 12 organized-crime cases, sentencing 163 defendants from 12 criminal organizations. The cases involved offenses carried out via internet platforms and through coercive means, encompassing unlawful money lending, unlawful collection practices, and blackmailing of employers through fabricated labor disputes.
Compared with the campaign launched in 2018, the current crackdown highlights a broader shift: criminal activities are moving from offline to online environments, from overt violence to more concealed forms of coercion, and from traditional sectors into finance, debt collection, e-commerce, logistics and livestreaming.
For businesses, the key issue is how these risks can enter legitimate commercial operations. Suppliers, distributors, contractors, outsourced service providers, marketing partners and platform merchants may all create potential exposure.
Companies should focus on three areas.
First, strengthen third-party due diligence. Beyond basic qualifications, companies should assess ownership structures, related entities and unusual business activities where appropriate. Contracts should include clear compliance obligations, disclosure requirements and exit mechanisms.
Second, maintain effective internal reporting channels. Anonymous reporting, whistleblower protection, investigation procedures and corrective actions should form part of the internal-control framework. Early detection can help prevent criminal, regulatory or reputational escalation.
Third, preserve complete business records. Contracts, approvals, payment records and communications relating to procurement, financing, marketing, logistics and other high-risk activities may become important evidence during disputes, internal reviews or regulatory investigations.
China’s anti-organized-crime campaign is becoming more institutionalized, while enforcement against emerging forms of criminal activity is intensifying. For companies, organized crime is therefore not only a public-security concern but also an operational and compliance risk.
As criminal networks become more capable of hiding within digital platforms, commercial relationships and supply chains, corporate security must extend beyond the company’s physical premises to the wider business ecosystem.
By Weilin Xu, Researcher