Where there is money there are attempts to dodge taxes. This has been true everywhere in the world. Tax shelters are a continual concern in the US and is not uncommon to read about individuals who have successfully or not sheltered millions from the IRS. At the same time companies do this as well, by moving their headquarters to locations that are more tax friendly. Countries then struggle to find the balance between drawing wealthy individuals and businesses to areas where tax policy is not a deterrent while trying to draw as much revenue as they can. Success is crucial because on top of the revenues that can be provided from the companies and individuals, companies and money provide jobs and draw other companies and wealthy people which offer positive economic multipliers. This is the reasoning behind offering subsidies to companies to locate a factory or headquarters in your city/town/ect.
China has not been very successful at keeping wealth. As we have learned in this class China for the last two hundred years has been seen as a way to riches, but as we are slowly learning not a place to live. A recent survey conducted by the Hurun Report found that 64% of Chinese millionaires have plans to emigrate, citing a number of reasons including health and education. On top of this one might speculate that a desire to preserve wealth is an emigration motive as leakages are reporting tens of thousands of Chinese placing their wealth in offshore safety havens. While confidence in the Chinese economy rose for the first time in five years in the group surveyed economic conditions alone have not been enough to deflate emigration ambitions, especially in the wake of economic reforms. A worry of China now is to hold on to the human capital that they have. With economic growth slowing a loss of successful entrepreneurs and business leaders will only compound economic troubles.