U.S. SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                     FORM 4

                  STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

    Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
       Section 17(a) of the Public Utility Holding Company Act of 1935 or
               Section 30(f) of the Investment Company Act of 1940

|X|   Check this box if no longer subject to Section 16. Form 4 or Form 5
      obligations may continue. See Instruction 1(b).

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1. Name and Address of Reporting Person*

   Yao                   James
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   (Last)               (First)                 (Middle)

   c/o Kronish Leib Weiner & Hellman LLP
   1114 Avenue of the Americas
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                                    (Street)

    New York            New York                10036
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   (City)               (State)                 (Zip)

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2. Issuer Name and Ticker or Trading Symbol

   Lotus Pacific, Inc. (LPFC)
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3. IRS Identification Number of Reporting Person, if an Entity (Voluntary)


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4. Statement for Month/Year

   September 2001
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5. If Amendment, Date of Original (Month/Year)


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6. Relationship of Reporting Person to Issuer
   (Check all applicable)

   |_|   Director                             |X|   10% Owner
   |_|   Officer (give title below)           |_|   Other (specify below)

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7. Individual or Joint/Group Filing (Check Applicable Line)

   |X|  Form filed by one Reporting Person
   |_|  Form filed by more than one Reporting Person

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* If the Form is filed by more than one Reporting Person, see Instruction
  4(b)(v).


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           Table I -- Non-Derivative Securities Acquired, Disposed of,
                             or Beneficially Owned
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                                                                                                     6.
                                                      4.                              5.             Owner-
                                                      Securities Acquired (A) or      Amount of      ship
                                         3.           Disposed of (D)                 Securities     Form:     7.
                                         Transaction  (Instr. 3, 4 and 5)             Beneficially   Direct    Nature of
                           2.            Code         ----------------------------    Owned at End   (D) or    Indirect
1.                         Transaction   (Instr. 8)                   (A)             of Month       Indirect  Beneficial
Title of Security          Date          ------------     Amount      or     Price    (Instr. 3      (I)       Ownership
(Instr. 3)                 (mm/dd/yy)     Code     V                  (D)             and 4)         (Instr.4) (Instr. 4)
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Common Stock               09/10/01       P                2,600,000  A      (1)                     I         (1)
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Common Stock               09/18/01       S               12,000,000  D      (2)      5,631,999      I         (2)
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Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.

(1)   These shares were acquired in private transactions in exchange for 2,600
      shares of common stock of Yao Investment Corp ("YIC"), which is controlled
      by the Reporting Person.
(2)   On September 18, 2001, YIC transferred these shares to T.C.L. Industries
      Holdings (H.K.) Ltd. ("TCL") to compensate TCL for losses it incurred from
      a share swap between TCL and certain stockholders of the issuer (inluding
      YIC) in July 1999. After giving effect to this transfer, YIC owns no
      shares of Common Stock of Lotus Pacific, Inc. and Lotus International
      Holdings Corp., of which Mr. Yao is the majority stockholder, owns
      5,631,999 shares of Common Stock of Lotus Pacific, Inc.

                                     (Over)
                            (Print or Type Responses)


FORM 4 (continued)

Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
            (e.g., puts, calls, warrants, options, convertible securities)

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                                                                                                          9.        10.
                                                                                                          Number    Owner-
                                                                                                          of        ship
                    2.                                                                                    Deriv-    Form of
                    Conver-                    5.                              7.                         ative     Deriv-   11.
                    sion                       Number of                       Title and Amount           Secur-    ative    Nature
                    of                         Derivative    6.                of Underlying     8.       ities     Secur-   of
                    Exer-             4.       Securities    Date              Securities        Price    Bene-     ity:     In-
                    cise     3.       Trans-   Acquired (A)  Exercisable and   (Instr. 3 and 4)  of       ficially  Direct   direct
                    Price    Trans-   action   or Disposed   Expiration Date   ----------------  Deriv-   Owned     (D) or   Bene-
1.                  of       action   Code     of(D)         (Month/Day/Year)            Amount  ative    at End    In-      ficial
Title of            Deriv-   Date     (Instr.  (Instr. 3,    ----------------            or      Secur-   of        direct   Owner-
Derivative          ative    (Month/  8)       4 and 5)      Date     Expira-            Number  ity      Month     (I)      ship
Security            Secur-   Day/     ------   ------------  Exer-    tion               of      (Instr.  (Instr.   (Instr.  (Instr.
(Instr. 3)          ity      Year)    Code V    (A)   (D)    cisable  Date     Title     Shares  5)       4)        5)       5)
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Explanation of Responses:

See attached footnotes.

**  Intentional misstatements or omissions of facts constitute Federal Criminal
    Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).


/s/ James Yao                                             October 31, 2001
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    James Yao, President                                          Date

Note: File three copies of this Form, one of which must be manually signed. If
      space provided is insufficient, see Instruction 6 for procedure.


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