Because many overseas-listed entities are technically incorporated in third countries such as the Cayman Islands, Chinese authorities can legitimately claim that they don't have jurisdiction over corporate fraud cases.
Shareholders claim Gulf Resources engaged in undisclosed related party transactions, and Chinese regulatory filings showed that the company was materially smaller than it claimed to be.
He combined contemporaneous political issues with elements from a Chinese parable and the story of the judgment of Solomon, in which two women claim the same child.