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China’s Richest Are Desperate To Get Their Fortunes Out Of The Country By Any Means Necessary

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4 minute read

From the Daily Caller News Foundation 

By Wallace White

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

Debunking the myth of the ‘new economy’

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From Resource Works

Where the money comes from isn’t hard to see – if you look at the facts

In British Columbia, the economy is sometimes discussed through the lens of a “new economy” focused on urbanization, high-tech innovation, and creative industries. However, this perspective frequently overlooks the foundational role that the province’s natural resource industries play in generating the income that fuels public services, infrastructure, and daily life.

The Economic Reality

British Columbia’s economy is highly urbanized, with 85% of the population living in urban areas as of the 2021 Census, concentrated primarily in the Lower Mainland and the Capital Regional District.
These metropolitan regions contribute significantly to economic activity, particularly in population-serving sectors like retail, healthcare, and education. However, much of the province’s income—what we call the “first dollar”—originates in the non-metropolitan resource regions.

Natural resources remain the backbone of British Columbia’s economy. Industries such as forestry, mining, energy, and agriculture generate export revenue that flows into the provincial economy, supporting urban and rural communities alike. These sectors are not only vital for direct employment but also underpin metropolitan economic activities through the export income they generate.

They also pay taxes, fees, royalties, and more to governments, thus supporting public services and programs.

Exports: The Tap Filling the Economic Bathtub

The analogy of a bathtub aptly describes the provincial economy:

  • Exports are the water entering the tub, representing income from goods and services sold outside the province.
  • Imports are the water draining out, as money leaves the province to purchase external goods and services.
  • The population-serving sector circulates water within the tub, but it depends entirely on the level of water maintained by exports.

In British Columbia, international exports have historically played a critical role. In 2022, the province exported $56 billion worth of goods internationally, led by forestry products, energy, and minerals. While metropolitan areas may handle the logistics and administration of these exports, the resources themselves—and the wealth they generate—are predominantly extracted and processed in rural and resource-rich regions.

Metropolitan Contributions and Limitations

Although metropolitan regions like Vancouver and Victoria are often seen as economic powerhouses, they are not self-sustaining engines of growth. These cities rely heavily on income generated by resource exports, which enable the public services and infrastructure that support urban living. Without the wealth generated in resource regions, the urban economy would struggle to maintain its standard of living.

For instance, while tech and creative industries are growing in prominence, they remain a smaller fraction of the provincial economy compared to traditional resource industries. The resource sectors accounted for nearly 9% of provincial GDP in 2022, while the tech sector contributed approximately 7%.

Moreover, resource exports are critical for maintaining a positive trade balance, ensuring that the “economic bathtub” remains full.

A Call for Balanced Economic Policy

Policymakers and urban leaders must recognize the disproportionate contribution of British Columbia’s resource regions to the provincial economy. While urban areas drive innovation and service-based activities, these rely on the income generated by resource exports. Efforts to increase taxation or regulatory burdens on resource industries risk undermining the very foundation of provincial prosperity.

Furthermore, metropolitan regions should actively support resource-based industries through partnerships, infrastructure development, and advocacy. A balanced economic strategy—rooted in both urban and resource region contributions—is essential to ensure long-term sustainability and equitable growth across British Columbia.

At least B.C. Premier David Eby has begun to promise that “a new responsible, sustainable development of natural resources will be a core focus of our government,” and has told resource leaders that “Our government will work with you to eliminate unnecessary red tape and bureaucratic processes.” Those leaders await the results.

Conclusion

British Columbia’s prosperity is deeply interconnected, with urban centres and resource regions playing complementary roles. However, the evidence is clear: the resource sectors, particularly in the northern half of the province, remain the primary engines of economic growth. Acknowledging and supporting these industries is not only fair but also critical to sustaining the provincial economy and the public services that benefit all British Columbians.

Sources:

  1. Statistics Canada: Census 2021 Population and Dwelling Counts.
  2. BC Stats: Economic Accounts and Export Data (2022).
  3. Natural Resources Canada: Forestry, Mining, and Energy Sector Reports.
  4. Trade Data Online: Government of Canada Export and Import Statistics.
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Business

Trump puts all federal DEI staff on paid leave

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From LifeSiteNews

By Emily Mangiaracina

Trump’s shuttering of federal DEI programs is in keeping with his promise to ‘forge a society that is colorblind and merit-based.’

President Donald Trump has ordered all federal diversity, equity and inclusion (DEI) staff to be placed on paid leave by Wednesday evening, in accordance with his executive order signed on Monday.

The president pledged during his inaugural address to “forge a society that is colorblind and merit-based,” which is the impetus behind his efforts to abolish DEI programs that prioritize race and ethnicity above merit when hiring workers.

Trump’s Executive Order on Ending Radical and Wasteful Government DEI Programs and Preferencing stated, “Americans deserve a government committed to serving every person with equal dignity and respect, and to expending precious taxpayer resources only on making America great.”

“President Trump campaigned on ending the scourge of DEI from our federal government and returning America to a merit based society where people are hired based on their skills, not for the color of their skin,” White House press secretary Karoline Leavitt said in a statement Tuesday night. “This is another win for Americans of all races, religions, and creeds. Promises made, promises kept.”

The Office of Personnel Management issued a memo to the leaders of federal departments instructing them to inform employees by 5 p.m. ET on Wednesday that they will be placed on paid administrative leave as all DEI offices and programs prepare to shut down, according to NBC News.

It is unclear how many employees will be affected by the erasure of federal DEI programs.

Diversity training has “exploded” in the federal government since Joe Biden took office in 2020, the Beacon noted, with all federal agencies having mandated a form of DEI training before he left office.

DEI initiatives have long been widely denounced by conservatives and moderates as divisive, but they have been coming under increasing fire for undermining the competence and most basic functioning of public institutions and private corporations, even putting lives at risk.

For example, some commentators have blamed growing – and at times catastrophic and fatal – airplane safety failures in part on DEI hires and policies. Upon the revelation that a doctor at Duke Medical School was “abandoning… all sort(s) of metrics” in hiring surgeons in order to implement DEI practice, Elon Musk warned that “people will die” because of DEI.

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