The Bo case is a bloody one, and for fear of being implicated, the mainland has set off a "fleeing wave" of black money

The Bo case has been a bloody one, and for fear of being implicated, the mainland has set off a "fleeing wave" of black money. With the 18th National Congress of the Communist Party of China approaching and the case of former Chongqing Municipal Party Committee Secretary Bo Xilai being exposed, rumors have set off...

The 18th National Congress of the Communist Party of China is approaching and the case of former Chongqing Municipal Party Committee Secretary Bo Xilai has been exposed. Rumors have set off a "fleeing wave" of mainland black money. Funds in secret accounts related to the military are eager to escape from the mainland to avoid being implicated in Bo's case. Taiwan has become the largest destination for escaped funds.

Taiwan's "Excellence Magazine" bimonthly reported in the June issue that the CCP leadership stepped up its military purge after the Bo Xilai case was exposed. In the first quarter of this year, China's foreign non-financial direct investment reached US$16 billion, a sharp increase of 95% compared with the same period last year.

In the bloody aftermath of the Bo Xilai ouster in mainland China, and the aftermath of the purge, a huge invisible wave of secret funds continues to quietly flow out of overseas countries and is directed towards Taiwan.

Reports pointed out that mainland funds fleeing Taiwan mostly use Taiwanese businessmen as intermediaries, remit money through underground financial channels, launder money by purchasing luxury homes and other properties in Taiwan, or apply to the Taiwan government for investment disguised as foreign capital. A Taiwanese businessman said that he recently received a money laundering task of NT$2.8 billion (approximately US$93.46 million) and purchased several listed companies and real estate, and there will be several more cases in the future.

The report also pointed out that some of the funds escaping from the mainland may first pass through a third place, then flow into Taiwan, and then return to the mainland through foreign exchange settlement by Taiwanese businessmen and mainland individual tourists, as well as underground remittance channels, forming a countercurrent of international black money.

According to reports, a Taiwanese businessman helped Chinese investors to invest in Taiwan a few years ago. Recently, through the same channel, he received the task of arranging NT$2.8 billion, so he bought several listed companies and real estate without leaving any trace. He said that there are several more transactions to come, which must be neatly arranged before mainland leader Xi Jinping fully takes over.

>Taiwanese businessmen serve as white gloves and heads for Chinese-funded "money hiding". Most of them are very low-key and extremely alert. The targets they fancy are actually not public, and are broken into parts to avoid attracting attention, let alone being a star target of the market's attention.

Reports indicate that in the first quarter of this year, China’s foreign non-financial direct investment reached US$16 billion, a sharp increase of 95% over the same period last year, revealing a signal of capital flight from the mainland. People familiar with the mainland pointed out that Bo Xilai's struggles have intensified. The second and third waves have developed into the system of his total backer Jiang Zemin, and secret accounts related to the military are eager to escape from the mainland.

Reports indicate that due to the financial undercurrent caused by the political struggle in Zhongnanhai, Taiwan is a convenient and expedient choice. Due to the frequent business exchanges between the two sides, Taiwanese businessmen can often play white gloves and arrange first-class work here. In addition, underground financial channels are smooth. Through the so-called "local exchange", as long as the RMB is delivered in the mainland and the black market exchange difference and interest are deducted, the new currency can be obtained in Taiwan without even detouring to a third country.