The Rich Rush into Overseas Immigration, Fear of “Wealth Spreading”
In order to make their children receive better education and to pursue security of their assets, Many investment immigrants said immigration is a better choice for the poor domestic investment channels, various high taxes and fees, serious “miso-affluence” mentality.
Chin-San Liu knew nothing about it before participating in that promotion show. Facing an invitation printed with charming seaside scenery, he spent more than 5 minutes to search for the Caribbean Islands in Central America.
48-year-old Chin-San Liu has glass products manufacturing companies in Shanghai suburbs with more than 200 workers; he himself has hundreds of millions of personal assets. When he entered the promotion hall with half doubting, only to find a lot of others has similar ideas with him. It is crowded in a meeting room with capacity of 300 people. The aisles was filled with all kinds of villas ads pricing 70 million dollars. Buying a beach house ( The minimum investment of migrants is 35 million) and doing a routine physical examination and assessment procedures , he can get the citizenship of Saint Kitts and Nevis citizenship . The benefits he could get were: 1 , Being a citizen of Saint Kitts and Nevis, His passport will be visa-free in many developed countries around the world ; Second , It is a tax haven for foreign residents.
Immigration was a dream plan on his mind for years. Now, he is prepared to make his desire come true.
Reason One for Immigration: Their Children’s Education
Lao Li has been one step ahead than Chin-San Liu. He already move his family ( his wife and two sons ) to Canada.
Lao Li , 44,-year-old looks 10-year older than actual age. He started from scratch in construction industry. After more than ten years of diligent work hard , now he has more than 300 million Yuan assets , He has a blender factory in Shandong, also bought commercial plaza about 5,000 square meters, and had several small digital companies .
Two years ago he sent his 17 -year-old elder son to high school in Toronto, Canada. He went to visit his son several times, witnessing the customs and good living conditions in Canada, and then he hit upon the idea of immigration. “Canada has good policy. If we have the citizenship, We can enjoy the local treatment when accepting the education. I have two sons, The immigration is cost-effective.” Lao Li never reveal richness and wear simple clothes, He only drives ordinary Subaru vehicle.
Jun Luo, a senior executive of state-owned enterprises have also obtained permanent residency in Singapore with his family. Considering his occupation, he took no account of joining the Singapore nationality, just to have a permanent residence to come and go easily.
“My daughter is in a kindergarten in Singapore, She and the mother may join Singapore citizenship in the future. The purpose of doing this is to make my daughter get access to international education, we do not want my daughter to be educated within China.” Said Luo.
Xu Li, executive director of Meislin immigration co,ltd, said on their own experience that 90% of the investment immigrants are aim at gaining a foreign citizenship, also their children can study aborad. “The reason is that the cost of education for a child from a junior high school to college aboard can offset the cost of migration. ”
Reason Two: to Find a Sense of Security
In addition to children’s education, the changed domestic investment environment made up his mind to immigrant. The Chinese community’s questioning of “original sin ” and the “miso-affluence” mentality made him always have a sense of insecurity .
In mid-2009 the financial crisis is still on the way, nobody can see where the policy goes. “Three main reasons make me choose to immigrant: First, the domestic investment environment is not good and free investment is not allowed. Second, various taxes and fees are too high. Third, now The wealth gap is so big between the rich and poor. Maybe one day they will spread wealth ” Lao Li said .
“At present only a few rich people choose to immigrant, Just recently this trend becomes more obvious, Part of the reason is for the bad private business environment.” said Xiaobo Wu, a well-known financial commentator.
“In 2004 the state advanced as the private sector retreated, which had a great impact on private enterprises. In addition, private enterprises began to overflow from the manufacturing sectors and enter the financial and energy sectors, but these two sectors are of state monopoly filed, so private entrepreneurs are very disappointed and started withdraw from these filed. In addition, China’s policy environment is not friendly enough to private capital, the questioning of the original sin to the rich worsen the survival status of private sectors. The case of Huang Guangyu once again elevated the questioning of the original sin to a high degree , All believe that the rich have original sin , and evade taxes .To protect their wealth becomes a reason of immigration.
Reason Three: the New Way of Life
The sky in Shanghai is always gray and Streets are full of cars with noises, Chin-San Liu loved casual life at the beach of Caribbean where end gass pollution, no high-rise buildings, no crowds.
“Our generation has always been taught to contribute to the society. I was poor in my childhood and always had loads of schoolwork, I had to do what the superior like after I worked.Ｉmust be responsible for my hundreds of staffs when I had my business, besides I needed to give treats to officials from business and tax administrations, I earned some money but it was at the expense of my health ” said Chin-San Liu, a man with medium height.
Hurun, the first man who compiled the China Rich List at first, often contact with the tycoons. He admitted that many rich people had immigrated, but this might not be a common phenomenon. ” I think this is related with the changing of people’s attitudes, especially for affluent 2nd generation. They will pay more attentions to a different lifestyle and the quality of life, the do not want to be always be busy, what they purse is a slow pace of life.”
Destinations for Immigrants
According to the word from intermediaries, Canada and Australia are the first two preferred destinations for immigrants, because these two countries carried out light-handness immigration policy, besides there they have mature Chinese communities, The immigrants can easily be integrated into local Chinese community. In Canada, Toronto and Quebec are the best choices for immigrants. In Australia, They are Sydney and Melbourne.
In addition to U.S. and Canada, Singapore now is becoming the ideal place for immigrants,. It Abolished estate duty in 2008 , increasing the attractiveness to Chinese tycoons . Many rich people already had apartments or villas in Singapore.
But the agency generally not recommend to emigrate to Europe , because Europe does not encourage immigration and procedures are complicated, also amount of investment is particularly high.
In addition to these countries, some unknown small countries are also actively selling their immigration status. For example, the small country Saint Kitts and Nevis is with low tax rate and freedom of in and out. Some rich people will make these countries as their choice.
The loss of Elite and Wealth
A lot of rich people moved abroad, which actually means loss of China’s elite and wealth. Many people immigrated with a lot of wealth and it is a big amount and difficult to calculate.
But It is known that more and more elite who hold green cards, are still run their business in China. “They just want to protect themselves with foreign identity. They can make little money from overseas, where the annual return on investment at 15% is considered as big profit , but in China is fairly low.”said Xu Li from Meislin migration company.
“At present, the rich moved overseas and we should rethink about this. First we should retain their heart to make them leave wealth within China. We should further improve the level of our market economy. Actually many people are contradictory. China is the world ‘s more dynamic economy, but they feel not secure here, The rich want to invest in the financial and energy industry , but these sectors are not fully opened. The most important thing is to continue the reform” Wu Xiaobo said .
Lao Li had bought a villa of 500 square meters in Toronto, “For the domestic business, I am not prepared to develop further, unless there are particularly good opportunities. ”
As for starting a new undertaking in Canada, Lao Li is also very confused: “I am in my middle age, the chance in Canada is not very good, but there I have some friends, we always discuss doing something. But it is not easy. ”
He can not speak English, although he has his family and friends there, but he is not very be accustomed to local life.”We can not integrate to local mainstream society, it is difficult to decide to stay overseas or remain in the China.” Lao Li said.