When investors can not take money out, they tend to respond in four ways. They stop putting money in, they start cutting losses, they take their investments elsewhere, and plan on not coming back for several years. If they get really angry, add in don’t get mad, get even. Long term this will hurt China and benefit all their competitors.
Now Warren Buffet’s singing the blues with Jimmy. LOL.
China today is a fascist country which uses both Soviet-style Communism and Corporatist Capitalism as tactical tools to manage social unrest and maintain the central government’s power.
This should not be a surprise to anyone doing business in the PRC. First, you have to know someone. Westerners have to set up their business with a connected Chinese partner. Then, you have to bribe a number of officials. And then your operations still are subject to local politics. Not so much national politics but keeping the local officials happy. And that was before the repatriation limits. It was lucrative to be in the market but it wasn’t free market. It was a bureaucratic / crony capitalism swamp.