Prosecutors vow to continue combating online extortion targeting businesses

Prosecutors across China are cracking down on extortion cases targeting businesses, particularly schemes involving threats to spread false or damaging information online, the Supreme People's Procuratorate said on Wednesday.

The focus this year has been on crimes involving online extortion and blackmail, including the use of so-called "internet trolls" — paid ghostwriters hired to post coordinated online comments — and industry insiders facilitating such schemes, according to an SPP statement.

From January to September, prosecutors handled 159 cases involving threats to spread fake news about businesses, implicating 423 individuals, the SPP said.

Industries such as finance, food and pharmaceuticals, as well as those critical to people's livelihoods, have been prime targets for extortion, the statement said. Businesses at key stages, such as seeking stock market listings or funding, are particularly vulnerable.

In one case, a man surnamed Zheng attempted to extort 6 million yuan ($820,000) from an ice cream and tea company preparing for a stock market listing. Zheng and its accomplices staged a contamination incident at a company branch in Xuzhou, Jiangsu province, in late 2022.

An accomplice, posing as an employee, deliberately used tainted ingredients to prepare tea for customers while another filmed the act. Zheng later threatened to release the video online unless the company paid him. Instead, the company reported the incident to the police. Zheng was sentenced to six years in prison for extortion in June.

In another high-profile case, a man surnamed Song, who ran a popular WeChat account focused on the pharmaceutical industry, was sentenced to 11 years in prison in December last year. Prosecutors said Song posted false negative information about five pharmaceutical companies and demanded payments to remove the content. He also sought additional payments to avoid posting further false claims.

The SPP warned that such extortion schemes often masquerade as public oversight but are designed to manipulate public opinion, leaving businesses with little choice but to comply.

"These actions severely harm businesses' property rights and reputations," the SPP said.

Prosecutors pledged to continue targeting crimes that undermine the legitimate rights and interests of businesses, with a particular focus on industries vital to public welfare.