China: immigration of the wealthy accelerated after the last re-election of Xi Jinping

The party congress did little to allay the uncertainty of foreign investors and a resumption of emigration among wealthy Chinese is expected in the coming years in the coming years, despite the shadow of high global inflation and a looming recession.

For example, in early November, in the midst of a resurgence of coronavirus outbreaks across China, a luxury hotel in southwestern Sichuan province was full with hundreds of immigration consultants for a summit. three days.
The Chengdu event was held not long after the party's 20th congress, a pivotal political event that solidified Xi Jinping's hold on power, while sparking wider concerns about Beijing's political direction.
Immigration consultants say anxiety is spreading among wealthy Chinese and upper middle-class families. As the Chinese economy is slowing and the housing market is collapsing, the value of their wealth is shrinking, high-net-worth individuals are accelerating visa applications to purchase a path to citizenship abroad.

To address social inequality, the new Chinese leadership has identified "common prosperity" as a major economic task. Xi's report to the 20th Party Congress indicated stronger regulation to evenly distribute the spoils of China's rapid development.
In a brief announcement, the president said there will be tighter control over how wealth is accumulated, shaking the confidence of private entrepreneurs and the wealthy.
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“In the past I was hesitant about emigration, but recently I have finally made up my mind. Some friends close to me think the same way, ”said Fang Li, whose husband is a co-founder of a private company in Guangdong Province that produces fast consumer goods for the domestic and foreign markets.
He cited the "abnormal life" that his children should live under zero-Covid as a reason to leave, as well as the potential break with 40 years of economic policies that have seen an explosion of wealth in China.

“We are very concerned because we don't know how a socialist market economy in the new era will change society and impact what we own today and in the future,” Fang said.
According to a survey conducted in January by the Hurun Report Research Institute, about 32% of 750 Chinese with an average wealth of 42 million yuan ($ 5.8 million) per family said they wanted to emigrate this year. compared to 14% last year. 6% of the interviewees stated that they have already submitted an application for a visa for abroad.

According to Cherry Ma, a Chongqing-based immigration consultant, recent signals from the government have made people more nervous.
"Everyone is wondering if there will be repressive campaigns against the private sector and the rich," he said.
In January, Henley & Partners, a London-based migration investment consultancy firm, predicted that 10,000 high-wealth Chinese people – 1% of the very wealthy Chinese population – will emigrate this year.
The actual number could be higher due to closures, including the Shanghai one that lasted two months in the second quarter, and concerns about new economic policies.
According to the third quarter of Henley & Partners' Investment Migration Insights, China, including Hong Kong, is among the top five countries for net outflows of wealthy citizens in 2022. The results are in line with the high number of applications and questions recently submitted.
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At the end of the second quarter, more than 66% of web requests from East Asia were from Chinese citizens, and Chinese requests increased 134% in the second quarter compared to the previous three months.
Many Chinese customers who had paused their migration plans in 2020-21 due to the initial Covid-19 outbreak have reviewed them and resumed their applications.
In terms of programs attracting the most attention in East Asia, Portugal's golden residence permit program tops this year's rankings, followed by Grenada's citizenship by investment program and citizenship by naturalization by cases. exceptional of Malta. Greece's Golden Visa program, Saint Kitts and Nevis Citizenship by Investment program, and Dominica's Citizenship by Investment program also received a fair amount of applications.

It usually takes a few months to obtain a second citizenship, which is priced between $ 250,000 and $ 1 million, according to insiders and product packages.
However, as much as high-wealth Chinese are concerned, moving most of their wealth overseas is difficult, said Dong Shige, a veteran of immigration and overseas investment from Shenzhen.
Transferring more than 20-30% of assets overseas is difficult because a large part is usually invested in domestic properties and in the financial market, he said. Anyone who wants to transfer their assets to another country has to deal with strict capital controls and the weakening of the real estate market. In short, those who want to leave are not faced with a spread carpet, but, despite this, they try. What will the repercussions be for China?

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The article China: immigration of the wealthy accelerated after the last re-election of Xi Jinping comes from Economic Scenarios .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/cina-limmigrazione-dei-benestanti-accelerata-dopo-lultima-rielezione-di-xi-jinping/ on Wed, 09 Nov 2022 19:01:53 +0000.