New Wave of Emigration in China

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Editor's Note

Over the past three decades, China’s economic reforms have created a significant number of millionaires and billionaires. But the new found wealth has also led to a startling increase in the number of Chinese nationals emigrating to other countries. More and more rich seem to be considering moving abroad, as their wealth has made it easier to obtain citizenship and permanent resident status in other countries.

The Newly Rich Choose to Leave

Half of "super rich" considers emigrating

According to a new survey conducted by Hurun Research Institute, among the country’s 60, 000 super-rich with assets of at least 100 million yuan, nearly half of them are considering emigrating overseas. And 14 percent of them have already emigrated or are in the process of emigration.

Investor emigration becomes a trend on mainland

Statistics show more than 1,000 people applied for investment immigration to the US in 2009, doubling the figure from 2008.

Most favored destinations: US, Canada and Singapore

The three most favored destinations by the Chinese rich are the United States, Canada and Singapore. The US is the first choice of some 40 percent of the people interviewed, according to a white paper jointly released by Hurun Report and the Bank of China (BOC).

Top Reasons for Emigration

1: Children´s education

China´s less creative teaching-learning pattern and heavy-loaded study, concerns rich parents. Seeking a better education environment for children is the major drive behind the emigration plan. And they want their children to get a better chance to study abroad, and get a western style education.

2: Safety of personal wealth

Despite their huge wealth, many of them rely heavily on connections with authorities, but an administrative monopoly in China often puts them in a disadvantageous position in the market. Meanwhile, their connections with authorities make them easy victims of corruption charges and become targets of the public.

3: Retirement preparation

Sound social security system and medical insurance in the foreign countries are also a big attraction to most Chinese choosing to emigrate.

Query: Will emigration lead to serious wealth drain in China?

"Emigration indeed causes financial capital and wealth being taken out of China to some extent, but not that as bad as all that!"

A number of wealthy Chinese would put their business emphasis on China, because doing business overseas may not guarantee another success. China would give them more opportunities to do business. Taxation is another consideration for rich Chinese to not completely move all their assets or business out, and some may not even apply for resident status.

Appeal: Experts Call for Stop of Emigration Wave

"Those rich people should ask themselves before they leave, ´Should I desert the motherland and people by putting money into others´ hands?´"

-- Xia Xueluan, an expert on civil administration and a sociologist at Peking University

"We have been working hard to develop the economy in the past 30 years, but now these elite members of society are fleeing with the majority of the wealth. The loss may be even higher than all the foreign investment we have attracted. It is as if, when the time of harvest comes, we find the fruits have all gone to others´ baskets."

-- Zhong Dajun, director of the Beijing Dajun Institute for Economic Observation

Conclusion

In a sense, emigration to foreign countries is a phenomenon of social progress along with rising economic capacity, but a large-scale of emigration, specially the emigration of newly rich which is usually considered as the mainstay of one country, will undoubtedly cause lose of both talents and wealth to the country. Facing this, the emigrators should consider their choices more seriously, not losing their way in the path of the so-called "American Dream", however, for the country, maybe something should be thinked over, and something more should be done!