VANCOUVER, British Columbia - Lai Changxing, one of China's most wanted fugitives, lost a key round in court on Tuesday in his battle to gain political asylum in Canada.

A federal judge in Vancouver said there was enough evidence to support a previous ruling by an immigration panel that Lai, accused of being a smuggling kingpin, did not qualify for protection as a refugee.

Lai, once one of China's wealthiest businessmen, says he was a victim of political persecution when he fled to Canada with his family in 1999, and would be subject to torture or death if he was sent back.

"I am not persuaded that the panel erred in its determination not to accept (Lai's) submissions that the crimes alleged in this case were political," Federal Judge Andrew MacKay wrote in his 30-page decision.

China has accused Lai of running a smuggling ring that brought billions of dollars of goods - as diverse as cigarettes and oil - into the country in the mid-1990s and of bribing dozens of officials to avoid duties and taxes.

The Canadian Government supports China's bid to have him returned to faces charges.

Lai had asked Canada's Federal Court to order a new refugee hearing on the grounds that the first panel acted on insufficient evidence when it ruled the accusations against him were criminal in nature and not political.

Lai's attorney, David Matas, said the decision would be appealed to a higher court. Judge MacKay's ruling also refused to overturn the immigration panel's refusal to grant asylum to Lai's wife, Tsang Mingna.

Lai said he was disappointed by the decision, which he blamed on continued pressure from the Chinese Government, but said that he still trusted the Canadian judicial system.

"I am going to take this litigation all the way to the very end," he said through a translator.

Canada has traditionally refused to return accused criminals to countries where they face the death penalty, but Beijing has formally pledged to Ottawa that Lai will not be executed if he is found guilty.

Lai denies criminal wrongdoing and says he is a victim of political officials envious of his business success and of in-fighting within China's State security system.

He also argues that China would ignore its pledge not to execute him, noting that 18 government officials convicted in connection with the case have been given death sentences, and eight have been executed.

(Agencies via Xinhua)