Understanding the Complexity of the Chinese Economy and Its Hidden Transactions

This chapter explores the challenges of comprehending China's banking system and evaluating economic outcomes, revealing China's ability to obscure their true financial situation through the use of shadow banks and local government financing vehicles. It also addresses a recent case involving a cryptocurrency exchange that engaged in illicit transactions and evaded US sanctions, underscoring the limited visibility into China's economic activities and their utilization of digital currencies to camouflage their behavior.