I did not know the stories of ZSTN and CMED are that ugly. Seriously, those managements are criminals. We have to have some laws to punish this type of transactions. Fortunately, most Chinese companies still behave better than they do.
The problem of China is that very often there are no laws that are specific enough to address real issues. As a result, bad guys take advantage of this legal vacancy to benefit themselves.
After he went dark, the CMED CEO actually sold 60% of each of the CMED's Operating Companies (the real companies, the ones with revenues and assets) to fronts owned by himself and other members of the Buyer's group for which they paid about 1% of their value.
We never would've found that out (and still don't know if ZSTN did the same thing), except that one of CMED's creditors hired a bunch of investigators in China who somehow learned about the sales, so they ended up in US court documents.