> Why would Yuan escape China and why is it a bad thing for its currency? The full quote is: >> China has been able to maintain its system thus far, and may b

> Why would Yuan escape China and why is it a bad thing for its currency? The full quote is: >> China has been able to maintain its system thus far, and may be able to maintain it longer than many expect, because unlike every other major economy, China has strict capital controls. Yuan is not able to escape China, and therefore while other countries might see capital flee the country long before the point China has reached. China has been able to prevent a collapse of its currency. I think what it's talking about is people (both domestic and foreign) deciding it's a bad currency to be invested in, and trading it for better currencies. The currency is being held so out-of-whack from where market forces would naturally keep it, that if people were allowed to do that, the PRC's economy could experience significant negative effects. I don't think they're saying the currency itself would escape, just the value it represents.