A Chinese fugitive accused of masterminding a $10-billion smuggling ring has been deported after a 12-year struggle to stay in Canada.

Lai Changxing was flown from Vancouver to Beijing on Saturday, where he's been arrested and is expected to stand trial for a massive criminal operation involving bribery, smuggling and tax evasion.

The 52-year-old sought refuge in Canada in 1999 and dodged deportation by claiming that he would not receive a fair trial and could face the death penalty or torture in his home country.

The case finally moved forward last week when Chinese officials assured Canada that Changxing wouldn't face the death penalty if extradited.

Howard Balloch, Canada's former ambassador to China, believes the deal could bolster diplomatic ties between the two nations.

"You can count on the fact that he won't be executed," he told CTV News.

Balloch added that he believes China will also uphold its promise of giving Canadian diplomats access to Changxing.

For years, the high-stakes deportation case has been a contentious issue in Canada's bilateral relationship with China.

In 2001, China's former president Jiang Zemin sent former prime minister Jean Chretien a diplomatic note with assurances that Changxing would not be executed if returned.

Changxing's alleged smuggling ring is said to have been run out of a mansion in China's southern province of Fujian, where he reportedly plied officials with liquor and prostitutes.

More than 600 people have been investigated in connection with the operation, including police, customs and government officials. China's Xinhua News Agency reported that 300 people have been punished for their involvement with the famed "Red Mansion."

At least two officials, Yie Jizhan, chief of the Xiamen branch of the Commercial and Industrial Bank, and Wu Yubo, former section chief of Xiamen customs bureau, were executed. Eleven others were sentenced to life or given suspended death sentences.

Not only has the multi-million dollar case touched the highest levels of government, but a state-run Chinese newspaper has reported that if convicted it would be "China's biggest economic criminal case after 1949."

It is not yet known what penalties Changxing could face now that the death penalty has been ruled out.

With a report from CTV's Sarah Galashan and The Associated Press