I don't know what sort of work you do/what industry you're in, but that's not how legitimate business operates in the region.
I don't know what sort of work you do/what industry you're in, but that's not how legitimate business operates in the region.
As I stated, tax avoidance is real, but if you're seeing a bunch of money moving between networks of shell companies set up by Chinese nationals and the economic substance isn't apparent, ghost offices that close and pop up overnight, etc., what you're seeing is not legitimate business.
These are the hallmarks of money laundering. The structures and transactions serve no legitimate purpose and would only complicate matters and increase costs for a legitimate business.
These structures and transactions are designed specifically to obscure ownership, hide the origins of illicit funds and stay one step ahead of law enforcement.
2. If a business unit becomes successful and is spun off, the ownership of the new entity is not obscured. Haier will own a piece of the new company, as will the employees, and outside investors can be brought in to provide capital.
3. Money doesn't move between economic shells. Transactions between entities have clear economic substance because they're not designed to layer and place illicit funds.
4. If you go to an office, there will be real people working. There aren't collections of ghost offices that come and go overnight.
Bottom line: legitimate enterprises don't have structures that obscure ownership and exist only to facilitate transactions that make it hard to trace where money is coming from and going to. They have structures that serve a clear economic purpose.