https://www.bloomberg.com/news/articles/2017-01-19/china-s-remaining-weapons-in-capital-outflow-fight-bitcoin-art
Cash continues to flow out of China with the weakening of the Yuan, and the government is expected to erect higher barriers. The nation’s capital outflows last year estimated at $728 billion by Standard Chartered Plc, and the yuan predicted to continue declining against the dollar in 2017, the predicted measures are written in the article. Firstly is to limit overseas spending, cap citizens spending on expensive foreign products. Second is to pressure exporters to convert their earnings into Yuan. Thirdly is to tax currency transactions. Fourth is to clamp down on bitcoin and discourage its use. Fifth is to discourage banks from accumulating overseas assets.
This is unsurprising as the huge mass of wealth acquired by Chinese industry and firms is almost outgrowing their economy atleast the business' believe that their investments are safer or more valuable abroad. This could promote change within China, seeking to secure its own wealth, possibly reform. This could eventually lead to the collapse of the Communist state, but not yet of course. Baby steps everybody.
This is important as we look at politics on a global scale interacting with each other. Internal reactions and changes may be made because the outside world or trend does not fit the ruling government. China with all the capital that is flowing to and fro, would be making sensible moves to retain capiral within its borders and strengthen the Yuan.
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