China widens exit controls |
| China's new travel regulations, effective Tuesday, empower authorities to block citizens from leaving the country, transforming temporary bans into a permanent measure against capital and talent flight. Neo Wang, a strategist at Evercore ISI, observed: "The goal is to restrict outbound personnel flows, so as to keep home the capital and talent that might otherwise leave with them." Private bankers are said to be adapting by altering their approaches to client events and documentation to avoid government scrutiny. Additionally, the regulations impose a 20% income tax on assets moved into offshore trusts, further complicating wealth management for affluent Chinese. "The various measures create the perception that laws may change without notice with retroactive effect, the tightening is coming from all sides," said Clifford Ng, partner at Zhonglun Law firm. |
|