Funny Numbers Show Money Leaving China

Individuals and companies have found a creative way to move assets to safer havens.

Businesses funnel money out by overpaying for imports.

Source: ChinaFotoPress/Getty Iimages

News that China's foreign-exchange reserves rose by $10 billion in March rather than declining has quieted doomsayers. Worries that the reserves could dip to dangerous levels as soon as this summer -- after shrinking by an estimated $1 trillion last year -- appear to have been premature. Still, questions linger over exactly how much money is leaving China and why. The true picture may not be as rosy as the headline numbers suggest.

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