Legal grey areas narrowing
China Law Blog suggests that the economic downturn is making it harder for foreign companies operating "off the grid" to go legit:
Over the last few years, we have registered countless companies in China that had been operating quite openly without registration for years. We registered one company that purchased more than $300 million in Chinese goods a year and employed more than 3000 people. We registered another company that had been operating for more than 15 years. But only after the economic crisis has begun have we ever been in the process of bringing a company within the law only to have that company thrown out.

