Wealthy Chinese leave the country

[JayAtl]

Recently, experts have warned the Chinese government about increasing numbers of entrepreneurs leaving the country.

With more and more well-educated and wealthy, citizens seeking a life overseas, there are concerns for the future of China’s economic development.

Xiaonian, a well-known economist and professor at the China Europe International Business School in Shanghai, said recently to BBC, "Entrepreneur is the misfortune of the Chinese economy, the government should think about it.” Speaking at a conference in April, he went on to explain how entrepreneurs are important to the development of the economy and that that the government should be seeking to retain them in the country.



Increasing trend of departure




The number of Chinese millionaires in 2012 reached 1,02 million


The "2012 Hurun Wealth Report" shows that the number of Chinese millionaires in 2012 reached 1,02 million, with "super rich" defined as individuals with 100 million yuan (equivalent to $16 million US) exceeding 60,000. Of these, 85% of millionaires and 90% of super rich sent their children to study abroad; 16% of them have emigrated and a further 44% are considering emigrating.

According to an article on the same topic by the UK BBC, there are several reasons for this trend. Protection of property rights and a more stable business environment are prominent concerns. But so too is desire for a better lifestyle, with the wealthy increasingly feeling squeezed in China, and seeing an opportunity for a better family environment and more living space in other countries.



Advice to the government
Xiaonian advises the government to consider these aspects.

“Having these people stay here is really valuable," he said in April. "Allowing them peace of mind to invest here, we must first protect property rights.”

He explains how this has been a problem since the times of the Cultural Revolution, and while much has changed, the wealthy still don’t feel they have a sense of security in this area.

This is an area he had also referred to when speaking at the Davos winter conference in 2012. In a speech he gave at the conference, he talked about many areas where China sees progress, but the government is slow to reform. He talked then about “10 years of reform backlog” in areas such as the ability to transfer assets out of the country being a key reason for entrepreneurs moving overseas.

Wealthy Chinese leave the country | gbtimes.com

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A tidal wave of migrations has surged out of China over the last month. Shaken so violently by the recent execution of fellow tycoon, Zeng Chengjie, president of the Sanguan Real Estate Development Group in Hunan Province on July 12, followed by the arrest of a business investor, successful businessmen are taking their capital and leaving China.

Zeng was given the death penalty on “suspicion of illegal financing” by the Supreme Court. Wang Shaoguang, an attorney from the Sheng Ting law firm in Beijing, said that Zeng neither squandered financed money nor transferred assets. Actually, investors trusted Zeng and demanded his acquittal.

While the mainland business world was still in astonishment over the execution, Dinghui Investment founder Wang Gongquan was arrested for “disturbing the peace” by Beijing police on Sept. 13, causing further outrage.

In a post on the Weibo blog account of “Caixin” magazine on Oct. 13, Wang was lauded as more than just a successful businessman, saying Wang valued his role as a citizen highly. The article describes Wang’s efforts in assisting petitioners to visit Beijing “black jails,” participating in human rights activities, such as speaking out against forced demolitions and the Qian Yungui incident, the protestor who got crushed under a truck at a government land takeover.

In order to urge the release of Wang, scholar Chen Ziming, professor Cui Weiping, writer Xuecun, and entrepreneur Liu Suli, among others, issued a joint statement saying, “No matter what criminal charges that the authorities attempt to impose on Wang Gongquan, the world’s people all know it is political persecution. Ruling the nation like this, the country will not be stable. When exerting rule by force, one will certainly be judged by history.”

 

[Meesna]

Its also possibly because of all that pollution. What good is all that wealth if you are coughing yourself to death.

 

[JayAtl]

Its also possibly because of all that pollution. What good is all that wealth if you are coughing yourself to death.

actually, with more wealth - comes the right for more freedoms and the need for certainty that their wealth won't be confiscated by the CCP. Both which are lacking in China.

 

[armchairPrivate]

Breaking news - Poor Indians can't afford to leave the country!!!

 

[tranquilium]

actually, with more wealth - comes the right for more freedoms and the need for certainty that their wealth won't be confiscated by the CCP. Both which are lacking in China.

Oh please, show me a case where the wealth is "confiscated" without just cause.

 

[JayAtl]

Oh please, show me a case where the wealth is "confiscated" without just cause.

your just cause is injustice for the one whose assets are taken away. You government has come in taken over properties and moved entire villages by force.

Look, my argument is quantified by the fact that you are losing so many rich and entrepreneurs-- tell us why they are leaving if not for fear?

your own chinese state the reason here

“Having these people stay here is really valuable," he said in April. "Allowing them peace of mind to invest here, we must first protect property rights.”

He explains how this has been a problem since the times of the Cultural Revolution, and while much has changed, the wealthy still don’t feel they have a sense of security in this area.

execution of fellow tycoon, Zeng Chengjie, president of the Sanguan Real Estate Development Group in Hunan Province on July 12, followed by the arrest of a business investor, successful businessmen are taking their capital and leaving China.

Zeng was given the death penalty on “suspicion of illegal financing” by the Supreme Court. Wang Shaoguang, an attorney from the Sheng Ting law firm in Beijing, said that Zeng neither squandered financed money nor transferred assets. Actually, investors trusted Zeng and demanded his acquittal.

 

[tranquilium]

your just cause is injustice for the one whose assets are taken away.

Look, my argument is quantified by the fact that you losing so many rich and entrepreneurs-- tell us why they are leaving if not for fear?

your own chinese state the reason here

And yet the number of millionaires as well as FDI in China is increasing. People come and go and each have their own reasons, heck, many millionaires and billionaires move in and out of US each year as well. I am sure India has the same thing.

However, since you are accusing the Chinese government of wrongfully confiscating people's wealth, you better have the evidence to back it up.

 

[JayAtl]

And yet the number of millionaires as well as FDI in China is increasing. People come and go and each have their own reasons, heck, many millionaires and billionaires move in and out of US each year as well. I am sure India has the same thing.

However, since you are accusing the Chinese government of wrongfully confiscating people's wealth, you better have the evidence to back it up.

LOL now you sound like china's paid blowhard. if it was just status quo - they why are they raising the alarm from within China? and many people leave democracies like US and India, but they don't leave to escape.

when they killed Zeng Chengjie - I doubt he had access to his money anymore... his assets were confiscated. And again what more evidence do you need than the facts presented in the article. It clearly states because of the lack of security with the wealth they have amassed.

Millionaires increasing and FDI increasing are a complete separate thing...they have nothng to do with sheer amount of them leaving China with all their assets.

 

[Okemos]

The middle income countries have the most people to emigrate. The poor cannot afford to emigrate while people in the developed countries have no reason to emigrate. People in middle income countries have the means to emigrate but also want to enjoy higher quality of life in developed countries. Nothing wrong with that.

In fact, South Korea has substantial immigrants in the U.S., heck, they have like 50% of Chinese immigrants annually, while they only have like 1/30 of Chinese population.

South Koreans are also the largest immigrants in China, esp. in Beijing. One quarter of Beijing is completely dominated by South Koreans. Yes, South Koreans really enjoying choking smog in Beijing.

Nobody really cares if some wealthy Chinese leave China. They still invest in China. They just want free welfares in semi socialist countries.

 

[JayAtl]

The middle income countries have the most people to emigrate. The poor cannot afford to emigrate while people in the developed countries have no reason to emigrate. People in middle income countries have the means to emigrate but also want to enjoy higher quality of life in developed countries. Nothing wrong with that.

In fact, South Korea has substantial immigrants in the U.S., heck, they have like 50% of Chinese immigrants annually, while they only have like 1/30 of Chinese population.

South Koreans are also the largest immigrants in China, esp. in Beijing. One quarter of Beijing is completely dominated by South Koreans. Yes, South Koreans really enjoying choking smog in Beijing.

Nobody really cares if some wealthy Chinese leave China. They still invest in China. They just want free welfares in semi socialist countries.

now if only they would have you as the leading economist and think tank in china, then all would be hunky dory. You seem to be arguing or making excuses against your own who have raised the alarm.
People who immigrate in your examples are immigrating not out security concerns. something that you seemed to have missed the boat on why the chinese themselves have raised an alarm about.

In the US there is a law that you can get instant green card if you invest 500 thousand in the US. You have hordes of wealthy chinese immigrating to the US doing so...not sure how many S koreans have to do that to immigrate to China. Not sure how many of them are doing so under duress

 

[tranquilium]

LOL now you sound like china's paid blowhard. if it was just status quo - they why are they raising the alarm from within China? and many people leave democracies like US and India, but they don't leave to escape.

when they killed Zeng Chengjie - I doubt he had access to his money anymore... his assets were confiscated. And again what more evidence do you need than the facts presented in the article. It clearly states because of the lack of security with the wealth they have amassed.

Millionaires increasing and FDI increasing are a complete separate thing...they have nothng to do with sheer amount of them leaving China with all their assets.

Right...you are using a criminal who conned more than 100 million USD as your example? And it is anti-China piece, thus it must be justified! Never mind the fact that an opinion piece from a random nobody is hardly the gossip truth as well as evidence to the contrary.

 

[Meesna]

Isn't the whole communist party a bunch of thugs and criminals?

 

[JayAtl]

Right...you are using a criminal who conned more than 100 million USD as your example? And it is anti-China piece, thus it must be justified! Never mind the fact that an opinion piece from a random nobody is hardly the gossip truth as well as evidence to the contrary.

right to you the 50 cent gang everything quoted by other chinese is gossip. China is the land of paradise and nothing any article quotes in any negative light is ever true~!okay then

 

[UnChosen]

It's called wanting the best of everything. It's less to do with China and more to do with greed.

These wealthy Chinese will keep all their factories and business in China where they can take advantage of the cheap labour, relatively unregulated business policies, and Chinese government subsidies.

Then they'll take their money to North America to take advantage of the clean air, relatively low tax (for the rich), and cheaper properties.

After that they'll spend their money consuming expensive luxury goods (mostly European) that is heavily taxed in China and relatively untaxed in North America.

These newly emigrate rich Chinese (as well as Indian) don't invest a single cent into their new country, does not pay one cent into the tax system (because the money is earned in China), claim zero income, still use the public services, but own multiple homes and drive multiple luxury cars.

China is not losing anything having these people emigrate, as long as the factories remain in China. Far better to have these people leave now than to risk them eventually start using their wealth to lobby/bribe for more favours, ridiculous bailouts, and subsidies.

 

[jhungary]

It's called wanting the best of everything. It's less to do with China and more to do with greed.

These wealthy Chinese will keep all their factories and business in China where they can take advantage of the cheap labour, relatively unregulated business policies, and Chinese government subsidies.

Then they'll take their money to North America to take advantage of the clean air, relatively low tax (for the rich), and cheaper properties.

After that they'll spend their money consuming expensive luxury goods (mostly European) that is heavily taxed in China and relatively untaxed in North America.

These newly emigrate rich Chinese (as well as Indian) don't invest a single cent into their new country, does not pay one cent into the tax system (because the money is earned in China), claim zero income, still use the public services, but own multiple homes and drive multiple luxury cars.

China is not losing anything having these people emigrate, as long as the factories remain in China. Far better to have these people leave now than to risk them eventually start using their wealth to lobby/bribe for more favours, ridiculous bailouts, and subsidies.

Lol china is not losing anything, just a single thing - money

The rich from china moved to the west, the stuff that they buy will all stimulate a cash flow. Buying a house will involve someone selling their house for money, money that they will use to buy another house and/or car or anything. Then the rich Chinese will need to hire someone to fix the house and pay taxes and stamp duty, which the government will then use for something else.

Whatever they buy in the west will in itself generate their own cash flow sequent and this is what Chinese government is losing, their own economy. Not to mention buying properties I self is a form of investment so the more rich people left china, they will lose more money that way