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Citigroup got a lesson in Chinese Cash Investment this week as the Government in China decided against providing $1.8 billion in investment in Citigroup. 

Don't fear for Citigroup, Singapore came through with the money.

The lesson to be learned here is that China is always willing to invest cash in a good investment, but when that cash is leaving the actual country of China then all bets are off.  The same pretty much holds true for all business in China.  You will often find an open door policy in China for starting new business ventures as long as the cash or the controlling authority of the cash is going into China, staying in China or reinvesting in some other area in China.

Taking actual cash out of China is about as taboo as wearing a Tianemen square t-shirt to a Politburo luncheon or finding a de-humidifiers running in a Chinese sweatshop.  It just doesn't happen very often.

Singapore apparently paid Citi more when China refused - MarketWatch