But in the years that followed, its chosen nonprofit partner, the Laogai Research Foundation, badly mismanaged the fund, spending less than $650,000—or 4%—on direct support for the dissidents.

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After the founding of the People's Republic of China in 1949, Mao Tsetung established a system of labor camps for systematic repression, known as Laogai, an abbreviation for "Reform Through Labor".