Savings outflow must be tackled
Updated: 2013-07-30 21:15
What the government should be concerned about is not the outflow of foreign capital, but the wealthy sending their savings overseas, said an article in the 21st Century Business Herald (excerpts below).
According to the Ministry of Commerce, although the number of new enterprises funded by foreign capital dropped, the actual use of foreign capital in China still rose steadily.
But money from non-industrial sector continued to leave China. This is money from individuals that want to place it elsewhere. The recovery of the US economy and uncertainties of the Chinese economy have seen this outflow increase.
Building up a healthy market and a fair society is the best way to prevent this type of capital from leaving the country.