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SLOWING THE FLOW
There are signs that China is trying to slow down the migration. These investors are among the category of people China hopes will buy its domestically made rice cookers, electric cars and energy-saving light bulbs to fuel a new chapter of consumer-led growth. Research by McKinsey shows that the upper-middle class already accounts for a fifth of China’s private consumption in cities.
Articles critical of investment visa programs have appeared in China’s state media, often highlighting fraud cases or stories of Chinese who faced trouble after going abroad. China has also tightened controls on how much money individuals and companies can move out of the country as part of broader efforts to stop the currency from further weakening.
Banks are expected to enforce more strictly the yearly limit of $50,000 that individuals are allowed to take out of the country, and will be required to report any transfers above $10,000. Still, Chinese have typically worked around such controls by slowly moving money or using friends and family members to help them amass an overseas account.
