Q
FOLLOW THE MONEY
Quiet capital flight dents China's sway as $1.2tn 'disappears'
Beijing faces waning global clout with current-account deficit looming
Yu Yongding, an economist and former member of the People's Bank of China monetary policy committee, offered a theory. If a Chinese company exports products worth $1 million to the U.S., it logs the amount as sales in trade with the U.S., according to Yu. But sometimes, only $500,000 ends up in the company's bank account in China, while the other half remains abroad.
Yu said the accumulation of such money explains a portion of the $1.2 trillion.
In China's official statistics, a category called "net errors and omissions" covers such hazy transactions. For the 2009-2018 period, China recorded minus $1.1 trillion in this segment – suspiciously close to $1.2 trillion.
https://asia.nikkei.com/Spotlight/Datawatch/Quiet-capital-flight-dents-China-s-sway-as-1.2tn-disappears
Is this it?