Latest / China Economy with Fexingo: Beijing's Policies, Trade, and Asia-Pacific Markets
China's Capital Flight and the Silent Squeeze
With China's current account deficit widening to negative two hundred forty-six billion dollars in early 2026, the focus shifts from trade wars to capital flows. We examine how Beijing's tightening controls are reshaping global liquidity, impacting everything from Asian equities to emerging market debt. Lucas and Luna break down the mechanics of this silent squeeze, analyzing why domestic investment is struggling and what it means for the yuan peg and global supply chains in late October 2026.
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