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0 pointsgamblor9566y ago0 comments

China's currency controls actually made the problem worse--a lot of non-Chinese companies immediately backed off on Chinese investments (i.e., factories, etc.) as soon as the controls were introduced.

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seanmcdirmid6y ago

What do you mean? China has had currency controls for a very very long time. It doesn’t affect foreigners or foreign companies so much, they give us an easy out (we can exchange whatever we earn automatically).

gamblor956OP6y ago

I'm referring specifically to the capital-related currency controls.

A few years ago China clamped down on how much cash a person could send/take out of China or exchange for foreign currency.

It impacted a number of Chinese companies with operations in the U.S., especially Chinese real estate developers like Greenland, and basically eviscerated the EB5 visa market. I had a number of clients cancel deals because they couldn't get their money out of China.

seanmcdirmid6y ago

Yes, they clamped down on Chinese quotas, but not foreigner quotas. Your comment:

> --a lot of non-Chinese companies immediately backed off on Chinese investments (i.e., factories, etc.)

That meant foreign companies on Chinese investments, not Chinese companies on foreign investments, right?

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seanmcdirmid6y ago

gamblor956OP6y ago

I'm referring specifically to the capital-related currency controls.

A few years ago China clamped down on how much cash a person could send/take out of China or exchange for foreign currency.

seanmcdirmid6y ago

Yes, they clamped down on Chinese quotas, but not foreigner quotas. Your comment:

> --a lot of non-Chinese companies immediately backed off on Chinese investments (i.e., factories, etc.)

That meant foreign companies on Chinese investments, not Chinese companies on foreign investments, right?

3 more replies

j / k navigate · click thread line to collapse