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Lai Chang Xing, described as China's most wanted man, was detained in Vancouver for breach of immigration regulations after a year on the run.
Mr Lai is accused of smuggling billions of dollars worth of contraband goods into south-east Fujian province.
The case has stunned all China in its scale and in the apparent ease with which Mr Lai bought off the Xiamen city government.
Death sentence
More than 80 people have already been sentenced for their roles in the scandal known as the Yuanhua case. Of these 14 have been sentenced to death.
 The Yuanhua trials are being held in five cities |
He allegedly imported vast quantities of crude oil, cars and consumer goods without declaring them to customs and bribed scores of government officials.
China has issued an international warrant for his arrest through Interpol.
But correspondents say that if Mr Lai returns to China, he is all but certain to face the death penalty, which may make Canadian extradition hesitant to hand him over.
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