The CCP is stepping up its efforts to harvest the wealth of the rich. Experts reveal the methods of capital outflow – The Epoch Times

[The Epoch Times, December 02, 2023](Interview and report by Xu Yiyang, reporter of the Epoch Times Special Department) Since this year, wealthy Chinese have transferred hundreds of billions of dollars of funds overseas. As China’s economy continues to decline, more and more wealthy people are fleeing and transferring large amounts of assets abroad in order to avoid falling into the hands of the CCP.

“Just one word, run! Just run, I have no confidence in him (the leader of the Communist Party of China). No matter whether the leader of the Communist Party of China goes to Shanghai for a visit or inspection, everyone just has no confidence.” On December 1, a senior American China investment strategy expert , private investment consultant Mike Sun said this in an interview with an Epoch Times reporter.

From November 28th to 29th, Xi Jinping, the current leader of the Communist Party of China, went to Shanghai, China’s largest economic center city. He visited three places including the Shanghai Futures Exchange. The official media of the Communist Party of China claimed that his inspection sent a signal that “finance must better serve the real economy.”

“He just wanted to reassure the market. But in fact, in those days, China’s A-shares had been falling, especially financial stocks.” Mike Sun said, “Everyone just didn’t buy it. Now it’s okay to reassure everyone. Well, including plans such as revitalizing the Yangtze River Economic Belt, these are useless. That is to say, China’s overall economic situation is very bad now.”

“What’s the bad reason? It’s just playing with itself.” Mike Sun said, “The national team spends its own money there, and the government spends money to invest in some big projects or infrastructure projects, and they provide loans on orders. Private investment is basically It is stagnant. Then you think about it, if everyone does not invest or consume, the economy will actually be a stagnant water, and the economy of the entire country will not be good. No investment is because investors have no confidence, and everyone is unwilling and unwilling When investing, you want to take money away or transfer it out. Or when you have a bad premonition, you should keep the money in your hands to prepare for the hard days in the future.”

Mike Sun also said: “We heard that some people have left. Many of my friends want to leave. But one problem everyone faces is that funds cannot go out. If the money cannot go out, then those people will not be able to go out. , many people will be unable to leave. Some media reported that Chinese wealthy people bought houses and luxury homes in Japan, but it did not explain how the money was spent.”

Experts reveal how China’s rich are fleeing capital

Recently, foreign media published an article saying that China’s wealthy have transferred hundreds of billions of dollars overseas this year, purchasing foreign real estate, large amounts of foreign currency or gold bars. Zhao Jie, CEO of Tokyo real estate online service provider “Shenju Miaosuan”, said that Chinese people have become the main buyers of apartments in Tokyo worth US$3 million or more, and they often bring boxes of cash to pay.

The Epoch Times has previously reported that among the current Chinese tourists traveling to Japan, there are many wealthy people who go to Japan to buy real estate. Several real estate agents and developers told The Epoch Times that Chinese wealthy people are particularly interested in tower-shaped high-rise apartments located in Tokyo Bay. These high-end apartments, which usually cost more than 300 million yen (approximately US$2.01 million), have beautiful views of Tokyo Bay, as well as Tokyo Tower and Mount Fuji.

Mike Sun told The Epoch Times reporter that in China, foreign exchange is strictly controlled by the CCP authorities, making it difficult for funds to flow out. He said: “The CCP clearly stipulates that foreign exchange under the capital account is not liberalized. What does that mean? You can use the money to travel outside and go to school. This is a service trade. But if you want to invest Buying stocks, bonds or real estate is a capital investment. The capital account is not open. Therefore, from its perspective, it does not allow you to do this, and everyone can only do it secretly. Do it secretly Well, there must be various methods, and the risks are also high.”

Mike Sun also said that underground banks have also been severely suppressed by the CCP. He said that Macau was originally a place mainly used for money laundering or fund transfer, but since the CCP arrested Zhou Chuohua, the founder of Macau Suncity Group, nicknamed “Laundering Rice”, this avenue in Macau has almost been blocked.

“When I talked with a few friends about how the money went out, what was the most common scenario that everyone recognized? It is very likely that the money left the country through smuggling.” Mike Sun said.

He explained: “For example, there are two ways, one is water and land, and the other is land. As for the water way, for example, I have a boat or a speedboat, and I put the money on the speedboat. In terms of cash, I put the cash on the speedboat. Then when it gets dark, I run to Macau or a country in Southeast Asia. As for the land route, I cross the border from Guangxi and Yunnan, enter Myanmar, Vietnam and other Southeast Asian countries, and then transfer to Japan or other countries from there . As long as I leave mainland China, I can transfer to a third country.”

“But business people should have their own companies and open an import and export company.” Mike Sun further said, “For example, A is overseas and B is in China, and they jointly open a company. B is in China Exporting the goods A wants to him in RMB is an import and export business. A pays B in US dollars overseas, and he can make a price difference in the process. For example, this thing is obviously worth 10 yuan Money, but B said this thing is worth 20 yuan, then the difference in price can be left outside the country reasonably and legally. This is a common method, which is to achieve the flow of funds by setting up a trading company.”

“Some are simply virtual, which means they are not actually engaged in business.” He continued, “Anyway, you can open a company overseas and set up a store yourself, or you can directly find Chinese supermarkets and sell Chinese products to them. , this is entirely possible and entirely possible, and many people do this. There is also a relatively primitive way, which is the one I mentioned before. Even if you take RMB overseas, there are ways to exchange it. RMB in You can exchange it into U.S. dollars in Southeast Asia, and there are ways to exchange it in the United States.”

Some Chinese are using RMB to purchase multi-million-dollar properties in Southern California. This is what Meng Jun, a Chinese entrepreneur living in the United States, revealed to an Epoch Times reporter.

“Part of it has indeed achieved the purpose of transferring wealth.” Meng Jun said, “For example, for my real estate in California, I can trade it in RMB. Some sellers need RMB to return home, and buyers pay in RMB at home. In Southern California, The property is transferred to the buyer. This is legal in California, and many of my friends are already doing this.”

“Buying stocks is not allowed.” Meng Jun continued, “But this threshold has not been closed yet, so this is the last chance. If you don’t take action, you will never have such an opportunity again. This is (the Chinese Communist Party) The final madness requires a clear understanding of it.”

China has seen its largest capital outflow in recent years

China is experiencing its largest capital flight in years. Data show that net capital outflows reached US$53.9 billion in September this year, the largest since January 2016, when capital outflows were US$55.8 billion due to reasons such as the depreciation of the renminbi.

Among them, capital outflows in areas related to direct investment such as factory construction were significant, reaching US$26.2 billion; while net outflows related to securities investment such as stocks and bonds were US$14.6 billion, showing a net outflow trend since February 2022.

In August this year, China’s capital account experienced an outflow of US$49 billion, the largest outflow since December 2015. The outflow of capital also caused the yuan’s exchange rate to fall to a 16-year low.

The CCP has jumped over the wall and the rich are in danger

Meng Jun said that the CCP is now trying its best to loot the rich in a blatant way. “Because the CCP has no money, it is attacking these rich people and looting their wealth. This has been going on, but it is now naked and completely There is no cover up. It openly and desperately extorts you through so-called tax inspections, restrictions on your transfers, etc. This is the CCP’s consistent approach, but it has now been blatantly made public.”

Recently, there was news from China saying that “all the rich people with more than 30 million yuan are being investigated.” The whistleblower did not provide further details, and The Epoch Times was unable to obtain an official response from the Chinese Communist Party on this news.

Similar news had been circulated on many online media a month ago. According to sources, due to the economic downturn and financial pressure, local governments in China engage in extortion through “tax inspections.” A factory owner in Shanghai broke the news that Chinese Communist Party officials used banks to check the list of wealthy people with more than 30 million yuan (about 4.23 million U.S. dollars) of liquid assets and required them to hand over 20% of their assets, otherwise strict tax inspections would be carried out.

Meng Jun said that the CCP has now reached the point of openly robbing people, and the rich are in danger. He said: “We have seen it very clearly, and many friends have felt it now. Government departments are blindly extorting money, and regulatory authorities are extorting all kinds of money. There are too many such things, because the CCP has no money, and it is anxious. It is completely anxious. The CCP has now reached the point where it is desperate and very crazy.”

“So the rich should quickly sell off their assets, move them as soon as they are cleared, or hurry up and get people out first. It is safest for people to come out. When the time comes, you won’t even be able to get out. This is the most sad thing. People will not come out either.” , the money can’t come out, what do you think you will do in China? So you must have a clear understanding of the CCP.” Meng Jun said.

(Reporter Ning Xin contributed to this article)

Editor in charge: Lian Shuhua