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But the technique is mainly used by individuals concealing money gained through bribery, embezzlement or the stripping of the assets of state corporations, said a corporate lawyer in Beijing.
State corporations (parastatals) controlled industries vital to national security.
"The big state corporations are miserable at that," Mr. Rajan said.
The big state corporations, in particular, have gained political clout alongside their wealth.
Bank loans still go overwhelmingly to state corporations, as do stockmarket listings.
They run numerous Kremlin departments, bureaucracies, banking operations, and state corporations.
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Most commercial stations are now owned by out-of-state corporations.
The state had charged out-of-state corporations more than it charged local firms.
Last year, Steyer funded a California proposition to close a tax loophole that benefitted out-of-state corporations.
Despite the governor's efforts to woo out-of-state corporations to the Sunshine State, the companies have not come in droves.
In a statement released by his campaign for re-election, Mr. Siegelman characterized "giant out-of-state corporations" that did not pay taxes as freeloaders.
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