In the News
China clamps down on capital flight
Graham Watson
30th November 2016
The Chinese are getting twitchy about the amount of money flowing out of the economy, worrying about the possibility of capital flight and have thus introduced restrictions on outward foreign investment.
The worry is that the renminbi is being driven lower, foreign exchange reserves are being drained and that this has adverse consequences for the long-run performance of the Chinese economy. Can you think how?
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