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Indo-Pacific

China exit? Russia crisis has businesses thinking the unthinkable

Capital flight may have already begun as investors fear Taiwan contingency

How would the financial hub of Shanghai fare in a Taiwan crisis? Big capital outflows from China have been observed since the start of the Ukraine war.   © Reuters
RYUSHIRO KODAIRA, Nikkei senior staff writer | China

TOKYO -- The invasion of Ukraine has sent multinationals and investors in Russia scurrying to the exits. But something else is happening to global capital flows.

"Something big," according to Institute of International Finance Chief Economist Robin Brooks.

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