The cities of Weihai and Ghent, the Flanders-China Chamber of Commerce (FCCC), Ghent University and Flanders Investment & Trade (FIT) organized an economic cooperation seminar in Weihai, Shandong province on 7 July 2014.

Mrs. ZHANG Hui, Mayor of Weihai, and Mr. TERMONT Daniël, Mayor of Ghent, welcomed the participants. Following the showing of the movie “Ghent puts knowledge to work”, Mrs. Els Pandelaere, Investment Promotion Manager, Ghent and Mr. Domien Proost, Representative China Platform: Ghent University and Province of East Flanders introduced “Ghent: research and investment opportunities”. Dr Robert ZHAO gave a talk about “Weihai: introduction to the investment environment and overview of the main sectors”. The role of the Flanders-China Chamber of Commerce and opportunities for cooperation was introduced by Mrs. Gwenn Sonck, Executive Director, Flanders-China Chamber of Commerce & Secretary General, EU-China Business Association. Finally, Isabelle Wang, Investment Deputy, Flanders Investment & Trade talked about “Flanders-Gateway to Europe”. The event was concluded by a question and answer session and a networking lunch.

Australia topped the latest list of the most suitable destinations for rich Chinese who want to get overseas citizenship or permanent residency through investment. More than 25,500 Chinese received permanent residency in Australia in 2011 through 2012, and about 18% of them achieved their “green card” through investment, according to the Annual Report on Chinese International Migration 2014 published by the Social Sciences Academic Press and the Center for China and Globalization in Beijing. China emerged as the largest source for Australia’s investment migration during the period, accounting for 64%, up from less than 8% a decade ago. As Canada has tightened its investor immigration plan and economic prospects in Europe remain murky, Australia and New Zealand have won more Chinese hearts, said Yang Fang, Business Director at Globevisa, an immigration agency in Beijing. More and more Chinese are showing growing enthusiasm in purchasing properties in European countries like Portugal, Spain and Greece to get permanent residency, as housing prices in these countries almost dropped to the level of 10 to 20 years ago due to the European debt crisis. The top 10 countries for Chinese investment immigrants are Australia, New Zealand, Germany, Sweden, Singapore, Spain, France, Canada, the United States and the United Kingdom.

Bank of China (BOC) denied helping to launder money for people planning to emigrate by ignoring the annual cap on foreign exchange for individuals. According to a report by China Central Television (CCTV), the country’s largest foreign exchange bank has frequently allowed wealthy customers to transfer as much money as they want overseas. Under current regulations, individuals can convert yuan into a maximum of USD50,000 worth of foreign currency per year. BOC also failed to determine the source of the money and did not question what it would be used for, the report said. The CCTV report alleged that Bank of China opens accounts for customers seeking to move large sums overseas at its branches in Guangdong province and in the relevant foreign country. The money is then transferred across the border as a yuan-denominated transaction, but settled in the foreign currency at the overseas branch. This technique makes it impossible for the State Administration of Foreign Exchange (SAFE) to detect the deals as foreign exchange transactions. A government scheme that allows individuals to make cross-border yuan transfers of up to CNY300,000 without administrative approval is currently on trial in Guangdong.

In the past three years, almost 600,000 people have emigrated from China, prompting a spike in demand for money transfers. The accusations may lead to tighter control of the finance and banking sectors. An employee of a major state-owned bank, speaking on condition of anonymity, quoted by the South China Morning Post, said: “BOC is not the only bank providing these kinds of services. All major banks do. Many banks received directives from the government discouraging them from running the service. But this is a growth area and demand is huge.” A branch employee at BOC in Guangzhou said the service has been suspended and there is no timetable for its resumption. Zhou Xiaochuan, Governor of the People’s Bank of China (PBOC), said more time is needed to investigate alleged money laundering by the Bank of China (BOC). “The priority at the moment is to find out what’s going on,” he said at a media briefing on the sidelines of the sixth round of the China-U.S. Strategic and Economic Dialogue in Beijing.

Overseas companies are yet to realize the full benefits of using the renminbi as an invoice currency when doing business with China, according to a survey by HSBC Holdings. The survey shows that although 59% of the respondents plan to increase cross-border activities with the Chinese mainland over the next 12 months, only 22% currently settle transactions in yuan. According to HSBC, the figures also highlight the huge growth potential for yuan-denominated trading activities with Chinese companies, as China overtook the United States to become the world’s largest trading nation in 2013 with its trade in goods surpassing USD4 trillion. HSBC estimates that about one-third of China’s trade will be settled in yuan by 2015. Mark Emmerson, head of global trade and receivables finance for HSBC in the United Kingdom, said most foreign companies move toward the yuan invoicing model at the request of their Chinese partners, who look favorably on overseas partners who use the yuan as it shows commitment and eliminates foreign exchange risks. He said that most foreign companies use yuan to manage import and export, but some also do it for liquidity management reasons. The survey questioned 1,304 international and Chinese companies that have cross-border trade activities. Half of the respondents from Singapore, 44% from the U.S. and 42% from the UK said they believe yuan usage brings financial benefits, but less than one third of their German and Canadian peers share the view, the China Daily reports.

China’s quest to turn the yuan into a full-fledged global currency has hit a roadblock, as the planned roll-out of a worldwide payments system looks certain to be delayed by policy snags and technology challenges. The China International Payments System (CIPS) that would replace a patchwork of networks and allow hassle-free yuan payments was meant to debut later this year, but bankers say it is unlikely to be ready before 2016. The slippage might be good news for China’s big clearing banks, such as Bank of China (BOC), and offshore yuan centers such as London or Singapore, which stand to lose their privileged position. In the long run, however, an efficient global network for yuan trades will be essential for fulfilling Beijing’s wish to boost the currency’s use. A spate of agreements on yuan clearing with financial centers in Europe and Asia signed over the past month has highlighted the importance of such a system. Difficulties caused by failed transactions have made some companies consider reverting to the U.S. dollar in trade deals, foreign bankers and corporate treasurers at multinational companies say. Still, few bankers doubt the new international network will eventually become a major long-term alternative to clearing banks and offshore centers, the South China Morning Post reports