Report claims China lost $1.25tn to illicit outflows from 2003-2012

Mainland China lost US$1.25 trillion to illegal outflows during the period from 2003 to 2012, South China Morning Post reported, citing a new report from the nonprofit research group Global Financial Integrity. The mainland’s outflow for 2012 alone was US$249.5 billion, up 53% from 2011. Most illicit outflows were due to trade mis-invoicing, described by the report as “an acute problem for administrations in developing countries,” whereby traders under-invoice exports and over-invoice imports as a way to move money offshore.