The
Hidden Human Cost Behind China’s “Scamdemic” Crackdown
Beijing / Yangon / Singapore — Thousands of Chinese citizens have been trafficked across Southeast Asia under the false promise of “high-paying jobs,” only to be enslaved in online scam compounds controlled by powerful transnational mafias.
In
recent months, Chinese state media has launched an unprecedented campaign — a
mix of confession documentaries and televised trials — exposing the inner
workings of these criminal syndicates and the government’s efforts to dismantle
them.
“No matter who you are, or where you are, if you harm Chinese people, you will pay the price,” declared one investigator in a state documentary — a phrase that captures Beijing’s political message to both criminals and citizens.
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The Rise and Fall of Myanmar’s Digital Crime Families
From
Casinos to Cybercrime
For
nearly two decades, Myanmar’s border town of Laukkaing — nestled in the
self-administered Kokang region — served as a sanctuary for Chinese mafia clans
like the Wei, Liu, Ming, and Bai families.
Initially
thriving on gambling and prostitution, these groups pivoted around 2017 to
large-scale cyberscam operations that exploited both technology and human
desperation.
According
to China’s Ministry of Public Security, these clans transformed rural compounds
into digital fraud factories — guarded by militias and equipped with call
centers designed to defraud victims worldwide.
⚖️ Propaganda or
Justice? Beijing’s Televised Confessions
In
rare footage broadcast by CCTV, suspects in blue prison vests — heads covered
in black hoods — are shown confessing to crimes ranging from human trafficking
to homicide.
Among
them: Chen Dawei, a member of the Wei clan, who admitted ordering a killing “to
celebrate brotherhood.”
The
documentaries have a dual purpose: to dramatize justice and reassert China’s
control narrative after years of embarrassment over its citizens running such
operations abroad.
“It’s both a warning and a reassurance,” says Selina Ho, associate professor at the National University of Singapore.
“Beijing wants to show families that their missing relatives are being avenged — and the government remains in command.”
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The “Scamdemic” Economy: How Desperation Became a Weapon
Amid
China’s slowing economy and high youth unemployment, foreign “job offers”
promising quick wealth became irresistible.
Once
in Myanmar or Cambodia, recruits found themselves beaten, starved, or
electrocuted for refusing to defraud others online.
The
2023 film No More Bets, inspired by these realities, became a cultural
phenomenon — grossing over $500 million in China and scaring tourists away from
Southeast Asia.
“Once you’re abroad, the people you should least trust are your own countrymen,” reads one viral comment on Weibo — a chilling reflection of public disillusionment.
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The Scale of the Crackdown
Since
2023, over 57,000 Chinese nationals have been arrested across Myanmar, Laos,
and Cambodia in joint operations.
Chinese
courts have issued death sentences for at least 16 ringleaders, while dozens
face life imprisonment.
Authorities
claim that reported cyberscam cases in China have declined sharply since early
2024, describing the effort as an “effective containment” of transnational
digital fraud.
Yet,
the UN estimates that more than 200,000 people remain trapped in scam centers
worldwide — many still under Chinese control.
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Analysis — The Political Theater of Justice
The
televised confessions and high-profile executions serve more than judicial
goals. Analysts suggest they are part of China’s soft-power restoration
strategy, aiming to repair its tarnished image abroad while pacifying domestic
anger.
“The irony,” notes Ivan Franceschini, co-author of Scam: Inside Southeast Asia’s Cybercrime Compounds, “is that the masterminds are often Chinese themselves. That’s a narrative the government struggles to reconcile with its image as a global moral authority.
This
“war on scams” thus becomes both a criminal purge and a political performance,
crafted for domestic consumption and international optics alike.
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Regional Implications: Southeast Asia’s Balancing Act
Neighboring
countries face pressure to align with Beijing’s crackdown while maintaining
sovereignty.
Myanmar’s
military government, eager for Chinese investment, has cooperated selectively —
extraditing suspects while retaining local control of border trade.
Cambodia,
too, has begun dismantling compounds in Sihanoukville, but reports from NGOs
like Global Anti-Trafficking Network (GATN) suggest many operations have simply
relocated deeper into rural zones.
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Beyond Arrests — The Human Recovery Problem
For
victims who manage to escape, reintegration is slow and painful.
Many
face stigma, trauma, and police scrutiny upon returning to China.
Some
families, still searching for missing relatives, have formed online networks to
share clues and petition authorities.
“My
cousin disappeared four years ago. We still hope he’s alive,” wrote a Weibo
user last month — a message shared over 20,000 times.
By: María Pérez
| Editor-in-Chief, CRN Times
Location:
Beijing / Yangon / Singapore — Updated 09/11/2025
Reading time: 8
min