(Preview) The Foreign Influencer Ecosystem; Money Flowing Out of China; Xi’s Exit Strategy; A Mao YouTube Controversy
Nov 29, 2023
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Bill Bishop, author of Sinocism, discusses topics such as money flowing out of China, Xi's potential retirement, creative approaches to move money out of China, and concerns over the Chinese political system.
Chinese households and private sector companies are moving an estimated $50 billion a month out of China, highlighting the ongoing challenge for the Chinese government to both open up to the world and limit the outflow of money.
Chinese individuals and companies have found creative ways to move money out of China, including buying overseas assets, stocks, insurance policies, and investing in cryptocurrency, due to the lack of attractive investment opportunities within China.
Deep dives
Money flowing out of China
The podcast discusses the recent New York Times article about the flow of money out of China. It reports that an estimated $50 billion a month has been taken out of China this year, mainly by Chinese households and private sector companies. The Chinese government is making it more difficult to move money out of the country, but there is still a porous system that allows for money to leave. The podcast also explores the contradictions faced by the Chinese government, as they want to open up to the world while also limiting the outflow of money.
Creative approaches to moving money out
The podcast mentions some creative approaches that Chinese individuals and companies have taken to move money out of China. These include buying overseas apartments, stocks, and insurance policies, as well as investing in cryptocurrency. The Chinese government has cracked down on these methods, but there are still ways to get money out. The lack of attractive investment opportunities within China, such as the stock market and low-yield bank deposits, has fueled the desire to find better options abroad.
Speculations on Xi Jinping's reign
The podcast briefly touches on speculations about the future of Xi Jinping's leadership in China. While there are some theories about potential risks he may face, such as assassination attempts, it is generally believed that Xi will stay in power as long as he is alive and coherent. The podcast mentions the influence of Xi Jinping thought and how it has solidified his position within the Communist Party. The discussion also highlights the importance of power and control in the Chinese political system and the need for leaders to be paranoid and take precautions for their own safety.