Trading Companies and the Business of Illusion

(Beijing) – Last year, the owner of an export processing company who we will call Lin Minyao learned of an easy way to make money in Shenzhen, the port city next to Hong Kong.

Like his fellow traders, Lin said he could set up two shell companies, one in Hong Kong and the other in special areas set up to encourage trade in Shenzhen, to fake trades and profit from the two city's differing yuan exchange rates.