As China flexes its muscles in the Pacific Rim and behaves more aggressively toward Taiwan, the financial impact is being felt in Southern California.

Bankers estimate that more than $10 billion has fled from Taiwan to the United States since the start of this year, much of it flowing through U.S. branches of Taiwanese banks. The large-scale capital inflow has put nine Taiwanese banks with operations in the United States into a bind as they try to deal with a deposit surge and increased demand for financial services from Taiwanese investors and immigrants.

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