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Quiet capital flight dents China's sway as $1.2tn 'disappears'

Beijing faces waning global clout with current-account deficit looming

The IMF forecasts that China's current-account balance will turn negative in 2022.

BEIJING/TOKYO -- China has flexed its financial muscle to strengthen its international influence in recent years, but the country is fast approaching a point where it may have to rethink its strategy.

The International Monetary Fund forecasts that China's current-account balance will turn negative in 2022, due to the effects of the U.S. trade war and other developments. Under the surface, a huge outflow of money is widening beyond the control of the government's strict regulators.

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