China to tighten control over capital outflows

There is something in common in the countries with hardliners at the helm. Totalitarian governments are ready to solve political and economic problems at the expense of their citizens’ welfare. For instance, the policy of such countries as Iran, North Korea, Russia and China serve as a vivid example. Recently, China has started to scrutinize funds flowing out of the country amid the escalating trade war with the United States. Actually, the government has restricted its citizens’ right to independently manage their own money. On the instructions of the government, Chinese banks are currently suspending their US dollar remittance services. For instance, China Merchants Bank notified its customers that new transfers under the bank’s “Overseas Remittance Programme” would no longer be accepted. Apparently, this is just the beginning of a total ban on transferring money out of China. Over the past few years, China has introduced some measures to tighten its control over the capital flight amid the slowdown of its economy and the trade conflict with the US. At the moment, every Chinese citizen is allowed to buy foreign currency worth $50,000 a year. However, in the nearest future, the Chinese may probably be deprived of this right.