China’s Capital Flight Is Fueling Global AI. Beijing Cracks Down. - Barron's
China’s Capital Flight Is Fueling Global AI. Beijing Cracks Down. - Barron's
Source: Barron's
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DW NOTE
China's foreign exchange controls exist to prevent exactly this: capital seeking better risk-adjusted returns elsewhere. The outflows aren't financing AI research — they're escaping a property collapse that has erased $18 trillion in household wealth and a bond market where provincial governments can't roll over debt. Beijing can tighten enforcement, but that only tells you how many people are still trying to leave.