Business
China’s Richest Are Desperate To Get Their Fortunes Out Of The Country By Any Means Necessary
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From the Daily Caller News Foundation
China’s wealthiest citizens are resorting to dubiously legal methods to get their money out of the country as economic turmoil and a failing property market loom over the nation, according to the Wall Street Journal Wednesday.
The richest in the country are using various methods to circumvent the $50,000 foreign exchange limit, such as buying cryptocurrency, paintings or overpaying for imports among other methods, according to the WSJ. From the last half of 2023 to June this year, over $250 billion in assets has left the country, according to a WSJ analysis of Census and Economic Information Center data.
“Five or 10 years ago if you were a Chinese person you could put your money in real estate and have a way of growing your wealth,” Martin Rasmussen, senior strategist at research firm Exante Data told the WSJ. “That is not by any means attractive anymore.”
A similar outflow occurred in 2015 and 2016, with Chinese citizens purchasing over $200 billion in foreign assets, according to the WSJ in 2016.
China’s economic growth is projected to slow down by 4.5% in 2025, according to the International Monetary Fund (IMF) in May. The “ongoing housing market correction” is a large part of the economic downturn, as an estimated $18 trillion in value was wiped from the sector since 2021, according to the WSJ.
Top Chinese developer Evergrande was ordered to be liquidated in January by a Hong Kong court after it failed to restructure in the face of more than $300 billion in liabilities. Before the company’s collapse, China was already projected to hemorrhage at least $65 billion to foreign investments, with the Evergrande collapse accelerating the capital movement.
Beijing is publicly making examples of people it catches using illicit methods to transfer capital overseas, such as one group featured on state TV network CCTV that reportedly helped move $112 million worth of Chinese Yuan, according to the WSJ. The State Administration of Foreign Exchange also publishes records of people punished for violating its controls publicly.
Punishments usually include fines around half of the amount illegally transferred, or sometimes criminal charges, according to the WSJ.
Even for China’s ultra-rich with overseas connections, it’s getting harder to evade the government’s crackdown on capital leaving the nation, private bankers told the WSJ. The flight signals a lack of confidence in the economy as Chinese lawmakers feel the pressure to stabilize the currency and manage an aging population.
One method involves buying paintings to be sold in Hong Kong at an auction, but keeping the profit from the sale in U.S. currency on an offshore account based in the city, where the mainland’s capital controls don’t apply, according to the WSJ.
Newer methods to transport currency utilize cryptocurrency, which is bought by a third-party facilitator, stored on hard drives then converted to dollars overseas, according to the WSJ. While China banned crypto trading in 2021, crypto wallets are still allowed.
Business
Bad Research Still Costs Good Money
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I have my opinions about which academic research is worth funding with public money and which isn’t. I also understand if you couldn’t care less about what I think. But I expect we’ll all share similar feelings about research that’s actually been retracted by the academic journals where it was published.
Globally, millions of academic papers are published each year. Many – perhaps most – were funded by universities, charitable organizations, or governments. It’s estimated that hundreds of thousands of those papers contain serious errors, irreproducible results, or straight-up plagiarized or false content.
Not only are those papers useless, but they clog up the system and slow down the real business of science. Keeping up with the serious literature coming out in your field is hard enough, but when genuine breakthroughs are buried under thick layers of trash, there’s no hope.
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Society doesn’t need those papers and taxpayers shouldn’t have to pay for their creation. The trick, however, is figuring out how to identify likely trash before we approve a grant proposal.
I just discovered a fantastic tool that can help. The good people behind the Retraction Watch site also provide a large dataset currently containing full descriptions and metadata for more than 60,000 retracted papers. The records include publication authors, titles, and subjects; reasons for the retractions; and any institutions with which the papers were associated.
Using that information, I can tell you that 798 of those 60,000 papers have an obvious Canadian connection. Around half of those papers were retracted in the last five years – so the dataset is still timely.
There’s no single Canadian institution that’s responsible for a disproportionate number of clunkers. The data contains papers associated with 168 Canadian university faculties and 400 hospital departments. University of Toronto overall has 26 references, University of British Columbia has 18, and McMaster and University of Ottawa both have nine. Research associated with various departments of Toronto’s Sick Children’s Hospital combined account for 27 retractions.
To be sure, just because your paper shows up on the list doesn’t mean you’ve done anything wrong. For example, while 20 of the retractions were from the Journal of Obstetrics and Gynaecology Canada, those were all pulled because they were out of date. That’s perfectly reasonable.
I focused on Canadian retractions identified by designations like Falsification (38 papers), Plagiarism (41), Results Not Reproducible (21), and Unreliable (130). It’s worth noting that some of those papers could have been flagged for more than one issue.
Of the 798 Canadian retractions, 218 were flagged for issues of serious concern. Here are the subjects that have been the heaviest targets for concerns about quality:
You many have noticed that the total of those counts comes to far more than 218. That’s because many papers touch on multiple topics.
For those of you keeping track at home, there were 1,263 individual authors involved in those 218 questionable papers. None of them had more than five such papers and only a very small handful showed up in four or five cases. Although there would likely be value in looking a bit more closely at their publishing histories.
This is just about as deep as I’m going to dig into this data right now. But the papers I’ve identified are probably just the tip of the iceberg when it comes to lousy (and expensive) research. So we’ve got an interest in identifying potentially problematic disciplines or institutions. And, thanks to Retraction Watch, we now have the tools.
Kyle Briggs over at CanInnovate has been thinking and writing about these issues for years. He suggests that stemming the crippling flow of bad research will require a serious realigning of the incentives that currently power the academic world.
That, according to Briggs, is most likely to happen by forcing funding agencies to enforce open data requirements – and that includes providing access to the programming code used by the original researchers. It’ll also be critical to truly open up access to research to allow meaningful crowd-sourced review.
Those would be excellent first steps.
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Business
DOGE asks all federal employees: “What did you do last week?”
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MxM News
Quick Hit:
Elon Musk said Saturday that all federal employees must submit a productivity report if they wish to keep their jobs. Employees received an email requesting details on what they accomplished in the past week, with failure to respond being treated as a resignation.
Key Details:
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Musk stated that federal employees must submit their reports by 11:59 p.m. on Monday or be considered as having resigned.
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Musk emphasized that the process should take under five minutes, stating that “an email with some bullet points that make any sense at all is acceptable.”
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FBI Director Kash Patel instructed agency employees not to comply with the request for now, stating that the bureau will handle reviews internally according to FBI procedures.
Diving Deeper:
Federal employees have been given a strict deadline to justify their jobs, as DOGE pushes for greater accountability within the government. The email came late Saturday, explaining that all federal workers would be required to submit a brief productivity report detailing their accomplishments from the previous week. Those who do not respond will be deemed to have resigned.
Musk framed the requirement as a minimal effort, writing on X that “the bar is very low.” He assured employees that simply providing bullet points that “make any sense at all” would suffice and that the report should take less than five minutes to complete.
The policy aligns with President Trump’s push for increased efficiency in government. The Office of Personnel Management confirmed the initiative, stating that agencies would determine any further steps following the reports. Meanwhile, FBI Director Kash Patel pushed back, advising bureau employees not to comply for the time being, stating that the FBI would handle its own review process.
The policy has drawn sharp criticism from the American Federation of Government Employees, which blasted Musk’s involvement, accusing him of disrespecting public servants. The union vowed to fight any terminations resulting from the initiative.
Musk also took aim at the White House’s Rapid Response account after it listed recent Trump administration actions, including expanding IVF access and cutting benefits for illegal immigrants. In response, Musk quipped that simply sending an email with coherent words was enough to meet the requirement, reiterating that expectations for the reports were low.
The directive comes as Musk’s Department of Government Efficiency seeks to eliminate waste across federal agencies, signaling a broader crackdown on bureaucratic inefficiencies under the Trump administration.
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