Simply put, the huge and lucrative industry of BVI shelf company corporate service providers located in Hong Kong needs to be identified and strictly regulated. Since one can obtain a turn-key BVI company for only a mere US$1190, every garden-variety illegal transfer pricing and trade-based money laundering thought conjured up by a Chinese businessman has an outlet. We cannot deny businessmen the right to buy these companies, so what do we do? We regulate.

There can be reasonable reporting identification controls on companies from suspect tax havens sold to PRC citizens and businesses? is this too radical an idea? if so, look at the alternative; runaway tax evasion. Perhaps the PRC government might want to look at the US bill now pending - I am speaking about the Stop Tax Haven Abuse Act. Why not treat BVI companies as domertic for tax purposes?

This may be heresy, but is there not a strong public policy argument to favour the PRC government's efforts to shut down BVI  company money laundering? I, for one, would like to see some radical action to curtail the activities of those totally unregulated Hong Kong corporate service providers. Hopefully, the leaders in Beijing are listening to their experts on money laundering control.