The case

The Shanghai Pudong New Area People’s Court recently tried a case in which Cao ran a supermarket inside a telecom-fraud compound in a foreign country, supplying food, daily goods and even cash exchange to people there engaged in telecom-network fraud and extortion, and paying high monthly rent and management fees to the compound’s operators. Between 2019 and 2020, Cao repeatedly crossed the border illegally without a passport, travel permit or other lawful documents — by motorbike, kayak and even on foot over mountains.

“I didn’t scam anyone directly” is no defence

Cao argued that he only ran a shop selling goods and did not take part in fraud directly. The court found that Cao knew the compound specialised in investment-scam and sextortion crimes against Chinese citizens and still provided it with food, daily goods and cash exchange as logistical support; his conduct made him an accessory to fraud and extortion. Separately, his repeated illegal border crossings constituted the crime of illegally crossing the border, with serious circumstances. Punishing the offences cumulatively, the court sentenced him to four years and eleven months’ imprisonment and a RMB 70,000 fine.

How accessory liability works in law

A person who assists criminal activity, even without committing the core acts of fraud or extortion, bears criminal liability as an accessory in a joint crime if they knowingly provide supplies, fund settlement, premises or other logistical support. Such conduct harms not only the victims’ lives and property but also national network and data security.

A practical warning

The most direct lesson for ordinary people: stay away from scam compounds and the people involved, and don’t comfort yourself that “I’m only running a small business” or “I didn’t cheat anyone directly”. Once involved, you may well be committing a crime yourself.

How Wang Xin’s team can help

  • Defense in cross-border telecom-network fraud cases
  • Defense in illegal border-crossing cases
  • Advice on cases connected with overseas criminal operations
  • Bail applications and reviews of the necessity of custody

If you or your family are involved in a fraud-related case, contact Wang Xin: phone +86 186-0113-9509, WeChat wang223040.

Quick answers

Can selling goods to people in a scam compound be a crime in China?
Yes. If you know the compound carries out fraud and extortion against Chinese citizens and still provide supplies, settlement or premises, you can be convicted as an accessory to those crimes.
What sentence did the Pudong court impose in the scam-compound supermarket case?
Four years and eleven months’ imprisonment and a RMB 70,000 fine, combining accessory liability for fraud and extortion with illegal border crossing.

This is an English edition of Wang Xin’s original Chinese article, 在境外电诈园区开超市卖日用品，也会被判诈骗罪. It explains the law of the People’s Republic of China in general terms and is not legal advice for any particular case; outcomes depend on the specific facts and on how local authorities apply the rules.