Lau is a mafia boss that imports opium on trade routes and sell it to customers in the east end. Obviously, this is illegal, and falls under the jurisdiction of the Guard Dog to regulate/remove from society. However, the Guard Dog requires information from sources that are on the other side of the law. As such, Lau is allowed to smuggle and sell drugs and "rule over" the east end in exchange for information and cooperation with the Guard Dog, such as when he used his trade routes to bring curry spices overseas from India.
How they originally forged their deal has yet to be revealed. Something about being pen pals with him? I imagine when OCiel rose to power, he needed some allies immediately. Some were allies with his predecessor, like Chlaus and Diedrich, and some had to be brought on from his own connections, like Lau. So Lau rose through the ranks relatively quickly.
No, Lau never attacked him in the manga. That was a plot thread the anime threw in, and I honestly can't remember what it was, exactly. It had something to do with making opium candy in the Funtom factories. And I think all this was thrown in to A) get rid of his ally, and B) kill off Abberline to make OCiel feel guilty.
He DID, however, attack and presumably kill Harold West and Mina, the couple from the Curry contest. I also forgot what the motivation there was, but I think it had to do with his interference in the east end. That requires a reread.
Can someone help refreshen my memory but what exactly is the relationship between lau and our Ciel? I’ve always been confused about that because of both the anime and the manga.