From the underground banks of southern China to deliberately overpaying for imports, Chinese residents have a dizzying plethora of ways to spirit money away from the economic uncertainties of home and toward the safer shores of hard currency.

Now, American lawyer Dan Harris says at least one Chinese company is attempting a new way to beat Beijing's tightening regime of capital controls: by faking a breach-of-contract lawsuit with an offshore entity which the Chinese company intends to "lose."

...