That Pesky Capital Account Surplus

Mon, 08 Dec 2008 13:15:06 +0000

From yesterday's Los Angeles Times:

Overseas Chinese have been buying Southern California properties for years. What's different now is that they are starting to do it in large groups and quite openly.

"Before, it was kind of private, a quiet thing among friends," said Jamie Lee, a Chinese American who runs the Los Angeles Convention and Visitors Bureau office in Beijing. "Now it's full-blown. . . . It's huge." Some of these groups "are talking about going every two weeks."

Chinese home-buying missions in the U.S. are part of a broader trend of individuals and businesses in China seeking greater investment opportunities abroad. This week government and business officials from China's southern Guangdong province will arrive in Los Angeles to create a regional chamber office.

That's one way to deal with a trade deficit.