CHINESE CAPITAL OUTFLOW CONTROLS ARE ‘EXTREME’
Yu Yongding is a former advisor to the People’s Bank of China. He just tried to transfer $20,000 USD out of China to fund a visit to relatives living abroad. He was denied on the grounds that he was ‘too old’.
That’s actually illegal in China since, under Chinese law, all citizens are permitted foreign transfers of up to US$50,000 a year regardless of their age.
Yongding has always been an advocate for preventing capital flight from his country. But this recent incident has lead him to conclude that the latest crackdowns have become “extreme”. They also caused the South China Morning Post to comment that:
The case adds fresh evidence that China is tightening controls of personal purchases of US dollars despite a US$50,000 personal allowance each year.