China has vowed to crack down on companies that have been secretly channelling cash into the country after a surge in capital inflows.
The clampdown follows severe discrepancies in China’s export data in the first quarter that aroused suspicions about Chinese companies using trade deals to evade capital controls and bring cash onshore.
China keeps a tight grip on foreign exchange flows in and out of the country, worried that speculators could fuel asset bubbles and inflation.
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