The Control Of Economic Order And Monetary Order Needs To Be Strengthened.

The rise of underground banks shows that capital and business control mechanisms are partly out of order.

The heavy blow of the departments concerned shows that the situation is not optimistic.

Xinhua News Agency reported that since April this year, the Ministry of public security, together with the central bank and the safe, has launched a special action to crack down on the pfer of illicit money by Off Shore Company and underground banks.

According to the latest data from the Ministry of public security, since April this year, more than 170 major underground money laundering cases and money laundering cases have been cracked up, involving about 800000000000 yuan.

The rampant underground banks reflect the economic order.

The control needs to be strengthened.

The SASAC data show that by the end of 2014, 107 central enterprises had set up 8515 branches overseas, distributing in more than 150 countries and regions in the world.

By the end of 2014, the total foreign assets increased to 4 trillion and 900 billion yuan, an annual increase of 16.4%. The total assets, operating income and profits of the pure foreign units supervised by the SASAC reached 4 trillion and 680 billion yuan, 4 trillion and 490 billion yuan and 120 billion yuan respectively.

However, according to the "2015 report on sustainable development of Chinese enterprises" issued by the Ministry of Commerce, the SASAC research center and the representative office of the United Nations Development Programme in November 10th, nearly 30% of Chinese enterprises' overseas business performance is in a state of loss. 36% of them are state-owned enterprises and 63% are private enterprises.

The findings of some independent organizations are that more than 50% of state-owned enterprises invest overseas.

In April 2014, the safe released the China balance of payments report in 2013, and the deficit of foreign investment income in 2013 was 59 billion 900 million US dollars, an increase of 4.3% over the previous year.

The international investment position data of the IMF show that the yield of China's outward foreign direct investment is only 4.3%, which is significantly lower than that of developed countries such as the United States.

In November 2014, Ben Shenglin, director of the EMBA center of Zhejiang University School of management, provided data on China's external policy.

The average rate of return on investment is -3% per year. The average yield in Germany is 6% to 7%. Our investment ability needs to be improved.

Typical cases of money laundering recently disclosed include the "9. 16" project in Jinhua, Zhejiang.

An electronic accounting account made by a gang involved shows that it earned 20 million 720 thousand yuan in the first 10 months of 2014.

The total funds involved in the project amounted to over 4100 billion yuan.

At present, 8 foreign exchange criminal gangs have been smashed over the core contingent.

A case involving funds can reach 100 billion level, which shows that the scale of money laundering should not be underestimated.

Money laundering is usually trading, knocking, black market trading and even casinos.

In addition to investment ability, the most important concern is false trade and fraudulent subsidies, corruption and bribery.

For example, Zhao Mouyi, a suspect in the "9. 16" project, has registered dozens of Companies in Hongkong, including Yiwu, Yu Fu logistics, etc., using the NRA account (non resident account) to pfer RMB over 100 billion yuan across the border.

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Difference is a matter of level, so buying overseas resources such as rapidly depleted mineral resources is a unforgivable theft.

Another group set up 8 companies in Shenzhen, making up the import and export business items and pferring foreign currency from banks to foreign designated accounts, earning interest rates and handling fees.

More abominable is cheating the subsidy. The police verified that the gang led by Pan led a registered 12 Leather Bag Companies in Yinchuan, Ningxia. Without real trade, they purchased export data from customs declaration and freight forwarders in Shenzhen, Dalian, Qingdao and other places. They exported their products from their companies under the name of the company, and bought fake foreign exchange products from Zhao, an underground bank. They illegally defrauded the Ningxia government's export awards of up to 38 million 600 thousand yuan.

Another case in Fuqing, Fujian, shows that a central business executive in the north is washing money through the Fujian underground money laundering.

These data raise questions about the volume of trade in China's export cities and the efficiency and fairness of export subsidies, which is more serious.

Money laundering is difficult to be eliminated. Money laundering will happen if there is a remittance. However, in the process of money laundering, there are a lot of investment failure cases, false trade and fraudulent subsidies. This shows that there are problems in the incentive mechanism.