The Collapse of China Collapse Theory

[BoQ77]

China doesn't have an extradition treaty with the US but does with many other countries such as France, Australia, etc. If it was for actually doing business, how come almost none of those "billionaires" (note: not actual billionaires. All billionaires are basically known and tracked by not just governments but also their competitors) have actually started any major enterprises or extended their previous enterprise operations overseas? I hope that is useful information.

Chinese billionaires would have some differences from other nations.

 

[LeveragedBuyout]

China doesn't have an extradition treaty with the US but does with many other countries such as France, Australia, etc. If it was for actually doing business, how come almost none of those "billionaires" (note: not actual billionaires. All billionaires are basically known and tracked by not just governments but also their competitors) have actually started any major enterprises or extended their previous enterprise operations overseas? I hope that is useful information.

It's likely they accumulated their billions through either crony capitalism or in the non-competitive environment that is possible in China, but not possible in a market regulated by law and order, not party whim. If that is the case, they would be unable to survive in real competitive markets abroad. I posted another thread (China’s state enterprise reform could strengthen state ) about the reform process, and it's clear that connections with the party come with considerable perks. The privatization process for the SOEs is likely to be messy, and reveal corruption, so these billionaires are getting out ahead of the popular outrage.

If I'm not mistaken, I believe that is what you were implying--in which case, I agree. That said, certain behaviors, like bribery, can be prosecuted in the US even if such actions took place outside the US. Therefore, these billionaires may not be able to dodge the law if they were involved in corrupt dealings, even if they are able to successfully flee to the US.

 

[tonyget]

I wonder why they prefer the US, where they will run into the buzz-saw of the IRS (and FBAR, and FATCA, etc.). Wouldn't Singapore be a better choice?

You'd be amazed by average Chinese people's knowledge about the US, it's somewhat awkward and illusory

As for chinese tycoons, this is Corporate America we are talking about, the land of capitalism. Riches will always find their way to avoid tax.

It's likely they accumulated their billions through either crony capitalism or in the non-competitive environment that is possible in China, but not possible in a market regulated by law and order, not party whim. If that is the case, they would be unable to survive in real competitive markets abroad.

They don't. They send their families over there, they themself stay in China keep making money.

PS. Nowadays more chinese migrate abroad due to aggravated air pollution.

 

[BoQ77]

Is this time to move out for billionaires ?