See i'm not an economist but you can't that sounds a bit counter intuitive too me. One story says China has capital flight and you have other stories talking about more and more Foreign directed investment into China.
Further, fdi is a small part of the economy. Something like 400 billion dollars a year if you believe the Chinese figures that are most optimistic.
So there can exist at the same time, foreign capital that wants to invest in the country and domestic capital that wants out. Even if it’s just the same proportion as the economy you’d see large capital flight.
The real question is what would happen if China liberalized its currency? Would that power investment more than it caused rapid flight? Who knows but every time the yuan opens a little trillions flows out of the country and the currency regime gets more conservative again.
And then there is Western capital, used to rule of law and personal property. They don't see that reality as a realistic threat. So they keep pumping money into China. It will work. Until it doesn't. And then the CCP will simply take it.
But somehow I suspect that it will be a "too big to fail" situation, and all those losses will be socialized in the West, i.e. the Western governments pay for the losses probably.
The same can be said about money moved to the West, just with a different risk profile. As the Russian situation has shown, your property can be creatively taken away if your country of origin pisses off the US too much.
I don’t think you’d be able to name a single case that isn’t T like that.
Just look at the length of the list with sanctioned persons. Are you seriously saying that all of them have "direct ties to and prop up Putin"?
2) Yandex was understandably cautious in the light of the new Russian laws, which effectively put a censorship net on coverage of the war.
3) Are you saying that Volozh should have followed the unspoken Western rules in operation of a business in Russia (read: he should've acted to please the West as much as he can, anticipating its demands) or risk loosing access to all his property in the West without any warning? And you think the Chinese will not see it as a potential risk?
He was sanctioned by the EU, no the US.
1) https://en.wikipedia.org/wiki/Arkady_Volozh
2) https://www.reuters.com/technology/yandex-ceo-volozh-resigns...
https://daily.jstor.org/communist-party-of-china/
> Regulations require that all state-owned enterprises and private companies operate party branches, and even some foreign-owned companies like Walmart have them. Internally, the organization can serve as a fertile networking ground. And for entrepreneurs, party membership often brings better relations with local government officials.
Come on you can't really talk about Rule of law when its as fluid as the west wants it to be right? When it comes to Russia and China they can quickly find majority rule to change laws.
Aah well its not my money on the line :p
Instead "very specific Russians" who had their wealth tied to the Russian state, were targetted.
This is a very important difference, completely followed a legal and standard procedures, was not arbitrary or decided upon by a dictator, or single person.
So no, "rich Chinese people" are not "dumbasses". And most are not "rich", but what the West would describe as "moderately wealthy".
M, not B wealth.
2.) A more thorough report shows that China's inbound FDI has been plummeting
https://www.investmentmonitor.ai/insights/chinas-fdi-decline...
China is seeing falling inbound FDI in all its major sectors, with financial services down 62% between 2019-2022 and electronics down 56%. Which would align with all of the major technology companies pulling out of China in 2022-2023
It's perfectly possible to have retail banking customers living abroad removing large amounts of capital from China, while at the same time foreign investors are injecting large amounts of capital into China. Two different flows.
I think the biggest impact is going to be places like Australia that benefit greatly from Chinese nationals abroad at the moment. There are lots of Chinese students and Chinese property owners in Australia. If they can't get access to their money, that's going to hurt Australia more than China.
Imho we should do what the Asian countries do: disallow buying property in Australia from non-Aussie citizens (or at least non-residents).
Source? All of my sources have it that foreign investors are shy after consistent rounds of government interference and even nationalization.
China’s Foreign Investment Data Distorted by Hong Kong Flows https://www.bloomberg.com/news/articles/2022-09-05/china-rou...