Regarding the mutual funds investing in China. I guess, the common theme should be that they contain more domestic than international companies. Take for example Taiwan or Japan. It wouldn’t make sense to invest in multinational electronics or computer companies, since they have again their sales in the US, and will show lower earnings if the dollar drops.
Second, you probably have to pay higher taxes here, since the currency gain adds to your capital gains. With the bank-account in China, I suppose you can at least postpone the taxes on the currency gains, if not completely avert it when claiming gains in RMB (Sections 985 and 989(a)?). Or make sure you own them in an IRA.
