China’s official narrative holds that investors can expect a steady and orderly opening up of its capital account, which will enable them to make inbound as well as outbound investments. However, recent data suggests that, if anything, the country’s capital controls are becoming stricter.
One interesting litmus of China’s unofficial outbound flows, is tourism.
With citizens permitted to exchange just $50,000 of foreign currency a year any amount exceeding this requires a permit from China’s State Administration of Foreign Exchange SAFE a foreign jaunt has always been a favoured conduit for backdoor capital flight.
Traditionally, tourism has stood next to over-invoicing of imports and...
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