- Author: The-world
- Editor: Jenny Ball
Bain & Company’s research report found that of the 20,000 wealthy Chinese with investable assets of more than 100 million yuan, 27% have immigrated, and 47% are considering immigrating. The immigrant ratio of the super-rich is as high as 74%, which is really an amazing world record.
If you really believe that the Communist China is the “fastest growing” and most “energetic” country in the world and hope to become a global leader in the 21st century, and you have already made yourself a very rich and influential person, then you should be more than happy to stay in the country and the economy with satisfaction firmly.
However, a recent set of research reports on the wealthy class in China has reached a surprising conclusion. The report shows that among China’s high-net-worth individuals who have investable assets of more than 10 million yuan, 14% have immigrated overseas, and another 46% are in the process of immigration. When the latter completes the immigration procedures, 3 out of every 5 wealthy Chinese will be a person of foreign nationality.
All the wealthy people in China have invested 55 trillion yuan (US$9.1 trillion) overseas. When Chinese currency is difficult to exchange and the government still maintains strict foreign exchange and capital controls, it is another jaw-dropping fact that such a huge amount of private capital flows overseas.
What is more important than these numbers is the reasons behind the large-scale emigration of China’s wealthy people. Economic income and situation clearly cannot fully explain the leading factor of their emigration behavior. Investigations by professional institutions and social observations show that the main factors driving the wealthy people to emigrate include the following.
- legal risks
The CCP’s legal system is still imperfect, private property has little protection. The lack of judicial independence and ubiquitous corruption have created a strong sense of insecurity among the wealthy in China. The rich are always the well informed and active group of people. One good example is that in the Communist China, state-owned enterprises are controlled by a privileged class. It is difficult for the government to levy taxation on them, instead the government has been distributing subsidies to them every year. Thus, enterprises that are not owned by privileged class will fall to the victim as the target for the CCP to plunder. Because of this fear, a great number of capitalists in China will transfer their assets abroad. If the CCP has a competent legal system, and private asset is protected, wealthy class would not need to have this kind of fear.
2. High taxation
The CCP has the highest tax rate at 45%, one of the highest in the world. It is not only higher than Hong Kong and Singapore, but also higher than the United States and Canada, which are the most popular immigrant destinations for China’s wealthy people. Although there are ways for tax evasion, but for many wealthy people, this is not a reliable strategy. Immigrating to a country with a low tax rate is a safer and more permanent arrangement.
Traditionally Chinese values children’s education a lot. More and more people realize that China’s current education system is too rigid and stressful, while neglecting the cultivation of students’ creativity and overall quality. The education models of first-class private boarding schools and higher education institutions in the United States, Britain and other countries are very attractive to the wealthy families in China. It is an important motivation for them to emigrate as their children will enjoy freedom and good education.
4. Medical condition
The CCP’s public medical system has many drawbacks. If low-income people in China complain about “difficult and expensive medical treatment,” Chinese high-net-worth people are lack of confidence in the quality and reliability of existing medical services.
5. Environmental degradation
The deteriorating environmental problems behind China’s rapid growth, especially air pollution and water pollution, have posed a serious threat to people’s lives, health and quality of life. A large proportion of wealthy Chinese emigrate because they can no longer tolerate the environmental quality of their country.
Those five factors are some of the main driving forces behind Chinese wealthy people choose to emigrate overseas. But the most important reason is the CCP is accelerating its own demise. The evil policy of Family Planning has greatly damaged both the CCP and China as a nation. The demographic structure is completely out of balance. Young people will not be able to afford for social insurance and old people will not be supported by social welfare. The CCP’s “rapid growth” process came at the cost of plundering and destroying the environment of generations of Chinese people.
Its recent aggressive foreign policy has isolated the Chinese Communist Party from the international community. Under the leadership of Xi Jinping, the CCP will completely disintegrate earlier than expected. No one wants to bet his future on a party that is about to be destroyed.