It would buy you a year of study at Harvard University, a couple of luxury boxes at the Yankee Stadium in New York or a lengthy stay at London’s Ritz Hotel. But Chinese citizens might soon be able to do something different with the $50,000 they are permitted to take out of the country annually: invest it.
In February, Ye Haisheng, a Chinese official at the State Administration of Foreign Exchange (Safe), said the government was researching whether the allowance — which has been unchanged since 2007, requires no specific approvals and is spent mainly on travel and education — could also be used to purchase overseas securities and insurance.
Even as it has risen as an economic power, China has retained strict capital controls which keep most of its vast household wealth within its borders and reflect the control which the ruling Communist party continues to wield over the country.