It has been estimated that Chinese criminals are largely responsible for most of the heroin entering Australia and New York and that they operate in a highly organized manner. However, these points have been overstated. Interviews with law enforcement personnel suggest that the heroin business almost invariably involves two distinct groups, one arranging for the importation and the other for distribution. Two case studies illustrate heroin trafficking and large-scale money laundering. These examples reveal the loose nature of the Chinese criminal enterprise in Hong Kong. Thus, economic models of organization, especially as they relate to the concept of enterprise, seem best suited to describe the involvement of Chinese criminal groups in the international heroin trade. 8 references