China's $1 Trillion Money Exodus Isn't About Capital Controls
- Tighter regulation proposed by observers including BOJ chief
- Companies and savers see better opportunities outside China
China GDP: Expecting the Unexpected
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Last year, Chinese policy makers watched $1 trillion in capital head for the exits. Now, the question on the minds of global investors is what exactly will President Xi Jinping’s economic team do about it.
One option is to build a wall around the $10 trillion-plus economy with new and comprehensive capital controls. It’s the economic equivalent of breaking the glass and pulling the alarm--and some serious people are advocating it. One is Bank of Japan Governor Haruhiko Kuroda, who turned heads at the talking salons of Davos last week when he urged China to impose capital controls to stem the flow of cash leaving.