Some Chinese Business Leaders Are So Nervous About The Economy They’re Losing Lawsuits On Purpose

February 21, 2016 in Daily Bulletin

People always find a way wrote Chuin-Wei Yap:

  • Due to concerns about China’s economy the rich are increasingly looking for ways to move their cash to safe havens abroad.
  • To prevent sudden capital flight the government has limited transfers of cash out of the country to $50,000 a year.
  • One company tried to hire a law firm to exploit a loophole by sueing itself for breach of contract. The plan was that the company would lose the lawsuit, and thus pay $3.5 million to its foreign subsidiary abroad.
  • It was hoped that going through the entire legal process would keep the government blind to what was really going on.

Read more here.

Source: The Wall Street Journal

Via: Marginal Revolution