[garmanarnar]

Yeah, that is why people are using Li's money laundering services. They cannot get cash out of China legally so they do it illegally.

[chrischen]

My point is that the Chinese establishment does not actually want this. It’s the private citizens trying to sneak the money out.

[from]

I don't think they're complaining about drug dealers paying part of their forex bill for them. Colombia has done the same thing for the past 50 years too (Google "black market peso exchange" or "sinister window"). But they probably don't like that high level people can have assets they don't know about or can't touch when they're in the process of a big corruption crackdown.

[chrischen]

What do you mean by “paying forex bill”?

It’s not just high level people moving capital our of China. It’s any well-to-do Chinese. Look at what happened to Vancouver. Basically a lot of people wanted to bring their cash out of China to avoid things like taxation, government crackdowns, etc. in general just protect their wealth because western governments are more predictable and friendlier to wealth inequalities.

But more importantly, all of that cash going to Canadian real estate and property owners is money taken out of the domestic Chinese economy.

[from]

> What do you mean by “paying forex bill”?

It allows capital flight to occur without draining the official central bank reserves of dollars.

> But more importantly, all of that cash going to Canadian real estate and property owners is money taken out of the domestic Chinese economy.

If you read the article it talks about how the money is used to buy goods in China that are then sent to Mexico so it's not a total loss.