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CB068101The Chinese are said here to be spending–or keeping–their money overseas.

All over the world, Chinese companies are sending home fewer of the billions of dollars they earn from exports, parking them in overseas bank and brokerage accounts instead.

Wealthy Chinese are not only keeping their money in foreign banks, but buying property in other lands, buying US securities, and buying gold and diamonds in Hong Kong.

It is enough that private foreign spending is almost now enough to balance China’s sizable trade surplus, and the pace of foreign currency accumulation fell by 74% last year.

What is the problem? Foreign investment in China is less and if the Chinese themselves do not invest in China their will be loads of unemployment and further development may come to a halt. Strange place to find capital flight. Are the Chinese really getting better returns–or more secure returns–somewhere else?

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