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I wonder what the billionaires do to get their money out? Do they pay people to travel with jewellery that gets sold for foreign currency once it's outside Chin
by adaml_623 4y ago
I wonder what the billionaires do to get their money out? Do they pay people to travel with jewellery that gets sold for foreign currency once it's outside China? Do they overpay for imported goods and get the difference paid into a Swiss bank account?
It's always interesting to me how really wealthy people pay for loopholes
- diceduckmonk 4y agoThey send their children overseas to overpriced universities, and are allowed to justify buying luxury cars, and other school related expenses. I don’t think the mentality on these expenses is getting a 1:1 conversion rate, but that money is meant to be spent. There’s various ways they can fund their children’s business ventures (passion projects) overseas without expecting it to ever turn a profit. With the nepotism in Asia, it doesn’t really matter what degree the children of the elite gets, but more school is always viewed as favorable, possibly even moreso than practical work experience sometimes. This is why you see a proliferation of masters and graduate programs in the United States that don’t require GRE or standardized exams. Obviously it’s a different story for the employment seeking middle class. To your point, it’s not uncommon or a bad idea for the student to study the arts or art history degree either.
- pessimizer 4y ago> They send their children overseas to overpriced universities, and are allowed to justify buying luxury cars, and other school related expenses. And real estate.
- MonkeyMalarky 4y agoLike that one Chinese student buying a $31M house in Vancouver!
- simonh 4y agoBuy crypto in China, sell it abroad. At least that was one approach. Note if you do it fairly quickly it doesn't matter what the value of the crypto is, just the liquidity. Another way is 'business' investments in other SE Asian countries, that then get liquidated and moved further abroad. China does a lot of business with S. Korea for example. If you have an export company, and China exports a lot, you can hold a portion of the foreign earnings abroad and just keep them there.
- williamcotton 4y agoThis is certainly much less painful than buying real estate in London, New Zealand, San Francisco, etc!
- bequanna 4y agoOr just buy/hold/sell a stable coin like BUSD, USDC, or USDT to minimize your market risk. Please no comments on how “Tether is a scam”, blah blah blah.
- __alexs 4y agoIf you're only interested in money laundering USDT is not a bad choice even if it is a scam.
- grugagag 4y ago> Buy crypto in China, sell it abroad. I heard this many times and I can’t figure out how it works. Crypto is sortof banned in China for a while for this reason and yet it’s still a route to take money out of China. But how? Who is going to give you crypto for yen in China?
- treaxc 4y agoYou buy a large number of ASIC crypto miners in China.
- simonh 4y agoIndeed, I was simplifying perhaps a bit too much. There are ways to arbitrage capital in China into capital abroad via crypto.
- deleted 4y ago[deleted]
- di4na 4y agoWhy do you think the crypto industry crashed when that ban started being enforced...
- AnimalMuppet 4y agoIn other places in the past, it was often done by bribing an official to ignore a wire transfer. Today in China? I don't know.
- diceduckmonk 4y agoYou don't need an official to authorize personal expenditures on an Amex Centurion black card. This is why staff at luxury clothing stores in Venice speak Chinese.
- ceejayoz 4y agoThat card stops working pretty quick if you can’t manage to get money out of China and into Amex’s hands.
- diceduckmonk 4y agoAnd that's why people proxy through Hong Kong and own overseas holding companies. Just don't be a thorn to the party.
- selimthegrim 4y agoDidn’t paulsutter above suggest Singapore had replaced HK though?
- elorant 4y agoIn Cyprus during capital controls banks allowed high value individuals to withdraw money.
- newsclues 4y agohttps://www.cbc.ca/books/wilful-blindness-1.6136088 https://www.cbc.ca/books/wilful-blindness-1.6136088 Organized Crime in places like Vancouver smuggles drugs into Canada, the funds are laundered in casinos and real estate, and the money is transferred from the Wealthy in China to OC in China, and the wealthy investor gets clean cash and houses in Canada.
- diceduckmonk 4y agoWhy make it complicated? Macau has casinos. The belt and road initiative into Cambodia also involved casinos, but they're reeling back on that.
- newsclues 4y agoDiversity and security of investments.
- paulsutter 4y agoSingapore, where the trade-to-GDP ratio is 320%. The best way to get money out of China is to ship goods to Singapore at a loss, then sell them on the Europe or the Middle East realizing the profits in Singapore Look at the port of Singapore. Massive loading and unloading from ships, but no rail or lines of trucks leaving. Look at the hundreds of ships parked offshore waiting to load or unload. Look at the position on a map (every ship heading east from Asia passes Singapore, 2000 merchant ships per day)
- di4na 4y agoThey launder the Drug Cartels money. Chinese based scheme for capital flight have taken that market by offering low or even zero cut to the cartels. Because the real client are the chinese individuals needing to get the money out. And they pay the cut. https://www.reuters.com/article/uk-mexico-china-cartels-specialreport-idUKKBN28D1LZ https://www.reuters.com/article/uk-mexico-china-cartels-spec... Cryptocurrency have been another big one. There are strong pointers that it is the main driver behind the rise of bitcoin. And possibly tether.
- deleted 4y ago[deleted]