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In the News

China clamps down on capital flight

Graham Watson

30th November 2016

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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?

China clamps down on capital flight
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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to Tutor2U, reads voraciously and is interested in all aspects of Teaching and Learning.

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