[dualogy]

Not really, think again.

China needs to convert their $4T into "real value" sooner or later. Rather sooner. Various official statements over the last year indicated as much: "after decades of accumulating dollars and treasuries, we have concluded that it would be wiser to reverse course and start spending them".

This presents them with two problems, the danger of being accused of dumping dollars (aka of agressive currency warfare), and the risk that doing so too much, too fast could crash the value of their remaining holdings when "financial markets" see what you're up to.

Much better to let your 1.3 billion people do the job: seemingly-inadvertently "encourage" capital flight and replace any too many "capital outflows" with your reserves. Your folks buy up assets all over the world and officials have the excuse of an emergency situation that justifies "using our reserves that were always meant for a rainy day just like this".

Just a wild little theory of mine. Take it or leave it ;D

[thatsjustcrazy]

Interesting speculation. Anecdotally, I've heard that in some H1B situations where real estate is purchased, a % of the sale price is given back to the Chinese government.