5 Shady Ways China’s Rich Are Getting Their Money Out | China Uncensored

On this episode of China Uncensored, the Chinese regime wants to stop rich people from moving their money out of China. I’m sure they’ll listen. I mean after all, they got rich in Communist China by following all the rules. Hi, welcome back to China Uncensored. I’m Chris Chappell. China is home to more than a million millionaires. Which is odd for a communist country. I guess you’d call it “communism lite.” Or maybe “socialism with benefits.” Well, one of the most popular activities for
Chinese millionaires is getting their money the Feng Shui out of
China. Money is flowing out of China on the scale of several hundred billion dollars
a year. And Chinese authorities are scared. It could hurt their economy. Plus all the millionaires now have less money left over to bribe them with. So a few years ago, the Chinese government passed a law: A Chinese citizen is only allowed to transfer the equivalent of $50,000 US dollars out of China each year. $50,000?! That’s not even enough to buy a single diamond-encrusted bathtub for your puppy! So it should be no surprise that China’s wealthy have come up with ingenious
ways of getting large sums of money out China without technically breaking the law— or at least without getting caught. A lot of millionaires launder money through casinos in Macau. But after that terrible typhoon flooded the
city back in August, a lot of them might be looking for new ways to launder their money— without getting it wet. Which is why I’ve compiled this helpful
list of 5 additional ways Chinese elite can get their money out of China. Number 5: “Smurfing” It’s named after the little blue cartoon
creatures that demonstrate the value of teamwork. Like when all the smurfs got together to kill Gargamel and bury his body. Or was that fan fiction? Well, this kind of smurfing refers to using teamwork to get money out of China. If a rich person wants to transfer more than $50,000, he can “smurf” it— by getting a group of family and friends together— and they each individually transfer $50,000 into his overseas bank account. Where did those family and friends each get their $50,000? How the smurf should I know? Number 4: Returning Merchandise You can only transfer $50,000, but you can still buy as much junk as you
want when you travel overseas. So let’s say a Chinese tourist visits Paris. He can take his Chinese debit card and buy, say, a $20,000 Rolex. And then immediately return that Rolex to the store for cash— minus a small service fee. He’s just gotten foreign currency, without technically touching his $50,000 quota. The only downside is, now he has no idea what time it is. The Chinese government eventually caught onto this, though. Now they’re monitoring all overseas debit card transactions of more than $150. That should put a stop to it. Unless… instead of buying a single $20,000 Rolex, he buys 500 individually wrapped plastic Casio watches. This could work, people. Number 3: Underground Banks Carrying a briefcase full of Mao money across the border may work in movies, but like most things you see in the movies, it’s a stupid idea in real life. Like building a baseball diamond in a corn
field, and hoping dead guys will show up. But there’s a smarter way to carry money across the Chinese border that doesn’t require a suspicious briefcase: A paper check. Fortunately, there are underground banks in China that would be happy to provide this service
for you. There’s lots of them. They’re part of that shadow banking system you hear about. So you go to one of these shady, underground banks and give them your Chinese money. They reach out to a shady bank in Hong Kong, and then use that bank to write you a check in foreign currency. Now, all you have to do is take that check, put it in your pocket, and walk across the border to Hong Kong. And then cash that check at a legitimate shady
bank. Like Citibank. Hong Kong is legally separate from the rest
of China, so those pesky currency rules don’t apply
there. Is this method of getting money out of China
legal? Well, technically you weren’t the one who transferred Chinese currency into foreign
currency, so…sure. Probably. Maybe. Number 2: Hong Kong Money Changers When I was in Hong Kong last year, I saw tons of money change shops like this
one. At first, I wondered, how there could be so many of these, just for exchanging currency for tourists? Well, it turns out, they have a more lucrative business model on the side. Fook Kee Seeds. Just kidding. The side business is helping rich people move money out China. It works like this. You—a Chinese millionaire— travel across the border to Hong Kong and set up a normal bank account at, say, Citibank. Set up the account in US dollars. Then you go to a money change shop. The money changer will give you a bank account
number at their bank inside China. Then you call your own bank inside China, and have them wire transfer your money over to the money changer’s bank account. That money is still in yuan, and it stays in China. But a couple hours later, after the wire transfer is confirmed, the money changer will deposit an equivalent
amount of US dollars into you Hong Kong account— minus a small fee. This may sound sketchy, but it’s technically legal, because no money ever crosses the border. You’ve just got to trust them that they’re going to give you your money after that first transfer. It’s like when a tourist visiting New York asks a local to take a photo of her, and hands him her expensive camera. It’s all about trust. And Number 1: Expensive Art For the truly en vogue Chinese elite, the best way to legally move large amounts of money out of China is with expensive art. Buy an expensive piece of art in China. For example, this ink splatter painting by modern artist
Hua Tunan. What’s it worth? 10 dollars? Maybe. But with the frame— 10 million. So you, the en vogue millionaire, take your Chinese money and buy this expensive piece of art/crime scene photo. Then you pack it up and take it with you to the land of art aficionados—America— where you sell your painting/handkerchief from a coal miner to an American collector for US dollars. He can hang it on his wall next to his velvet Elvis painting. Just make sure you sold him the original, and not accidentally a placemat from Applebee’s. And ta da— you’ve just gotten cash in a foreign currency without moving any money across the border. And hey, don’t stop at paintings. You could probably sell Americans all sorts of objects at inflated prices: statues, ceramics, or the beard of a Daoist master ground up with rhino horn powder and melamine. So between these five methods, plus a bunch of others that I haven’t even
mentioned— China’s wealthy have no problem getting
their money out of China on a large scale. No one knows exactly how many millionaires are transferring money like this— since keeping it secret is kind of the point. But next time you see a Chinese guy in a suit walking down 5th Avenue in with an ugly painting and 500 Casio watches, you’ve found your man. So if you were a Chinese millionaire, which method would you use? Leave your comments below. Once again, I’m Chris Chappell. See you next time. Thanks for watching. And if you *are* a Chinese millionaire, the best way to make sure you keep getting episodes like this is to support China Uncensored. With your money. Money that I assume is about to be transferred safely out of China. You’re welcome.

  1. There's nothing shady about keeping your own money. Every penny kept out of government hands remains in the productive sector of the economy, and doesn't get spent causing bloody mayhem.

  2. Buy an ugly hat or belt that's covered with cheap rhinestones. Buy diamonds. Replace some of the rhinestones with diamonds. Walk across the border.

  3. I will migrate to America and be come an citizen. then I take my Chinese money with me back to China to buy stuff. Then I go back to America and sell them on Ebay.

  4. Since the price of dollars is goin down each year. And yuan is worth more and more. I have been exchanged 50,000 usd to Chinese yuan annually.

    Funny fact, a lot high tech stuff is a lot cheap buying with yuan than dollars. Also travelling, ppl charge more if you use dollar and knowing u come from US

  5. Very simple….just toss it over the border where no ones watching….and hurry because china says they drop the dollar….wait to long and America will drop the yuen….lol!

  6. If I was a Chinese million, I'll have a plastic surgery after that I'll move to US not Europe, they have fanatic refugees, it's not safe there anymore.

  7. Here's another way: They go to a foreign country, let's say the US. They get a financial advisor, let's say from Charles Schwab. They open a variable mutual fund account for $500,000. The next week, they cancel said policy and get penalized say $20,000 for early termination. That doesn't matter them… they stole that money in first place. Then they get a refunded guaranteed cashiers check backed by a AAA rated financial firm for $480,000. They walk into a bank, say Citibank… and open an account with a $480,000 cashiers check. They do that few times, and the next time they come into America "for business" they find a Chinese Real Estate agent, to sell them a $1,000,000+ house for cold hard cash. No need for the real estate agent to haggle with a poor American who needs a loan to purchase the same house. Then, the Chinese home owner brings his pregnant wife so she can give birth at a hospital, on US Taxpayers dime (because you know, why not?), and the baby is an American citizen, which gives the ability for the mom to be a US Citizen. And then the husband has a direct route to funnel money from China to the USA.

  8. We have family in Shanghai, there doing just that. The reason is Trump’s sections are causing the yuan to drop. The economy in China is built on sand.

  9. This channel taught me that if anything Chinese are the best in the world at exploiting oversights in law systems.

    Then again the CCP's tyrannical laws is the best training a tax evader could hope for

  10. Funny, i used to drive cab and I was hauling around a lot of Chinese students buying stuff and then returning it back to the store to get the money back.

  11. Wait? They can't TRANSFER more than 50k, but they can PURCHASE as much as they want? Well they buy all these billion dollar mansions and cars in Canada and US, who cares about 50k transfers lol

  12. The left part of his hair is longer then the right side, look near the ears, and u will see that, please fix it , i only look at that section of the hair, even in the new vids.

  13. the truth of the fact is : in china their nationals only can lease the real state properties for 50 /70/ years (one generation) after that is up to the government to decide ,right? foreigners are no allowed to buy or lease ………that's why they take their money out of the country and acquire real state in foreingn countries , huge farms to cultivate , produce to ship to china

  14. What about trump is doing sure their are doing the same thing… But of cos trump doing it very stupid way… By taxing American….after all soon all thoae treasurery bounds will return to US soon… Then we see what happen.. The Fed can stop priting paper money or ever American will start buying gold or silver then that will be the last phase of the creation of America…. Guest what????

  15. Smurfing doesn’t work, the bank will check where the 50k goes, and if multiple transfers end up in the same account, even through other pawn accounts, you re fucked.
    Tho Chinese government limits the outgoing transfer of money, you are free to spend any amount on your credit card, so it isn’t that bad unless someone really tries to move their money out.

  16. It warms my heart to see that no matter what rules government create to restrict money, smart people will always find a way to beat them.

  17. love the show… but with all the shity truth you fling , do you feel safe traveling abroad… or even domestic… The Chines Government has a no problem making people disappear.

  18. Professor John Hobson at Hallam University Sheffield,here in the UK,has been following money leaving China since 2006,primarily through the British Virgin islands,his numbers are running into the Trillions of USA Dollars.

  19. Thieves and crooks will always find ways to get around the laws why do you think thieves and crooks have so much money they steal it from the public and laugh while doing it.

  20. I am here to learn how to get my dirty money out of China (minus a small fee). Oh thank you so much China Uncensored.

  21. The could invest millions into bitcoin mining farms,   mine the bitcoins then transfer to anywhere in the world and turn the bitcoin back into cash.

  22. Samething like Chinese company here in the US they make up the price in Hong Kong and ship goods from China like construction material and another stuff to the US then sell it in very low prices. They make it look like they gain a little profit but the price that they make up oversea is save in oversea account. The more Chinese move here it benefit China export because most of goods that they buy it made in China especially food. That is why that yellow kungfu religion colt was created.

  23. Why did anybody trust china with anything. Billions of scammers scamming everyone everything. Why did they ever call it The Fee Trade Agreement. When it is now The Free Scam Agreement.

  24. Seems like anyone with money in dictatorships around the world can't wait to get their money out of there before they fall out of favor with the leadership…

  25. Billions and Billions of dollars worth of money is dumped in Offshore Banks from Canada which is one of the highly taxed countries..
    This is nothing new..now that China produce so many millionaires every year this will continue..

  26. So there are many good points here. However the real large sums like over 20 million dollars would require certain types of brokers. Usually these brokers tie import business and export business. Using the intermediary like a trading company in i.e. Dubai, The importers would pay fake inflated invoice for their imports and exporters would charge less than their the normal prices. Thr beauty lies in the fact that Dubai would not impose taxes on this trading company. I worked for IRS SEP (special enforcement program) and this used to be real a nightmare for me to especially god damn freaking American soybean farmers. Yeah I am talking to you Chuck Grassly.

  27. Just sell stuff overseas and have the money put into an overseas account you can actually increase your money 10 times due to Chinese items being sold for when they are bought for in China

  28. I wouldn't marry a Chinese rich woman. She'd screw me over as soon as she could. The Chinese have no ethics, no morals beyond "money is God".

  29. So let's say I have a nice home in a nice gated neighborhood in the US that I want to sell. But the market in a certain part of the country is kind of thin for nice houses. How would one, hypothetically, get the house noticed by some nice Chinese buyer looking for a vacation home?

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