The relationship between the US and China is being threatened by extradition issues with Beijing vowing to halt judicial cooperation with Washington if the latter does not hand over one of its most wanted financial fugitives, who has been living openly in America.

Chinese and US officials familiar with the extradition negotiations said that Beijing has threatened to cease cooperating with the Washington in judicial matters if US federal prosecutors do not agree to return Ling Wancheng, a businessman now residing in the US.

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Ling is one of the financial fugitives to fall in China's far-reaching anti-corruption campaign, which started after President Xi Jinping assumed presidency.

                                                      Public Security Ministry

Ling is the brother of of Jihua, a high-ranking official and chief of staff of former president Hu Jintao.

Chinese police have reportedly informed their US counterparts that they would halt all cooperation with the US if Washington does not agree to the return Ling this month.

Officials in the international department of China's Public Security Ministry visited Washington earlier this month to hold talks and discuss Ling's case, but nothing concrete has happened since.

                                                   'High value intelligence asset

The US is said to be having a difficult time handing over Ling to Beijing as he is considered a 'high-value intelligence asset' being the brother of a former high-ranking  official in the Hu administration.

Ling is accused of laundering $1billion and being involved in three corruption cases.

Beijing's charges against Lin are currently being investigated by a panel of US officials led by Nirav Desai at the federal prosecutors office in Sacramento, California where Ling used to reside.

                                                    $1 billion

So far, US officials say they found no evidence that Ling has amassed $ 1 billion and that he was involved in the three corruption cases, as China alleges.

Therefore, US officials claim there has been no sufficient reason to extradite Ling. However, officials admit that a third investigation could be conducted.

"There have been a lot of false leaks regarding my client, Ling Wancheng - first that he was leaking Chinese state secrets, and now of corruption," said Greg Smith, a former official in the White House Counsels Office.

Chinese officials have been pressuring the US investigative team led by Desai, who traveled to China in January, to interview more than a dozen Chinese witnesses, who are allegedly privy to Ling's connection to corruption cases.

                                                    Case-by-case basis

Although US and China have no existing extradition treaty, the two countries have agreed to bend the rules on a case-by-case basis.

There are about 40,000 Chinese illegal immigrants in the US and despite President Barack Obama's willingness to return all of them to China, including the 1,500 Chinese on the active list for deportation, the process still needs the China's cooperation such as passport issuance.

US officials said China also is dragging its feet to return American fugitives living in Beijing. 

TagsUS-China relations, extradition treaty, Ling Wangcheng, President Obama, high-value intelligence asset, President Xi Jinping, china