How can this still survive the constant crackdowns from Xi? The reason I ask is because I have relatives trying to move money out, and it seems near impossible now except for the allowable yearly amount, which is low.
This is it. If you have $100M inside China, can take a 30% loss but end up with $70M in the US that isn't a bad deal.
This is totally unrelated. If you’ve got money outside the country you’ve already won, the point is that Chinese people can’t freely participate in foreign funds.
For example, many funds (sequoia, light speed, etc) maintain separate independent China funds to which the Chinese are restricted. It should be obvious to say, but a Chinese person cannot easily get wealth out of the country using a Chinese investment fund.
> If you have $100M inside China, can take a 30% loss but end up with $70M in the US that isn't a bad deal.
That’s not what GP is describing. GP is describing fraud wherein you lie about your losses (take 5% loss, report 20% loss). Everything you claim you earned goes back to China, but the gap between reported losses and true losses stays outside the country.
Note that you still want to be investing in a somewhat successful business for this scheme, to minimize loss of capital.
Indeed. And look at the valuations those specific funds pay.
> It should be obvious to say, but a Chinese person cannot easily get wealth out of the country using a Chinese investment fund.
It's not easy for a rich person to move $100M either.
I know folks who set up companies who export. They get an invoice from a US company for $1M in goods, then cancel after sending “the company” money.
https://blockworks.co/tesla-sells-bitcoin-for-profit-still-p...
I think most people would consider a billion dollars as a serious amount of money. Inflation isn't that bad yet ;)