74% of China’s Rich Emigrate, a World Record, Outpacing War-Torn Russia and the Middle East
Summary
TLDRThe video script discusses the significant wave of immigration among China's wealthy, with approximately 10,000 individuals leaving Shanghai alone, taking billions in assets with them. Popular destinations include smaller European countries like Greece, offering favorable immigration policies. Factors driving this trend include legal risks, high taxes, concerns over education, healthcare, food safety, and environmental quality. The script also touches on the challenges faced by these individuals, such as the Chinese government's efforts to retain talent and the impact of this migration on China's economic future.
Takeaways
- 🏦 A significant number of wealthy individuals from Shanghai are leaving the city, taking with them substantial assets.
- 🌍 Contrary to popular destinations like the US and Canada, smaller European countries are becoming more attractive for immigration.
- 🏠 In Greece, a relatively low investment in property can facilitate family immigration with minimal restrictions and a quick process.
- 📈 A report indicates that a large percentage of wealthy Chinese are either considering or have already immigrated, setting a world record.
- 👨👩👧👦 Family considerations, particularly for children's education, are a significant factor driving immigration among the wealthy.
- 🏡 Canada is highlighted as a preferred destination due to its friendly immigration policies and high-quality education system.
- 💼 The legal risks and perceived insecurity within China's judicial system are pushing the wealthy to seek safer environments abroad.
- 💼 High tax rates and aggressive tax enforcement practices in China are prompting wealthy individuals to look for more tax-friendly jurisdictions.
- 🌱 Environmental concerns, including food safety and pollution, are contributing to the decision to immigrate for a better quality of life.
- 🌐 The exodus of wealthy Chinese citizens raises concerns about the loss of human capital and its impact on China's future economic development.
Q & A
What is the estimated amount of money taken out of China by wealthy individuals leaving the country?
-Around 10,000 people have gradually left China, taking approximately 68 billion yen with them.
Which countries are not the top choices for wealthy Chinese individuals immigrating abroad?
-High-tech America and laidback Canada are surprisingly not the top choices for wealthy Chinese individuals.
What benefits does Greece offer to immigrants who buy property there?
-In Greece, spending 250,000 to buy a house allows an individual to move their entire family there with no age or language restrictions, and the process can be completed in as little as 6 months.
According to a report from China Merchants Bank and Banan Company, what percentage of wealthy Chinese individuals have already immigrated or are considering it?
-27% of wealthy Chinese individuals with investable assets over 100 million yen have already immigrated, and another 47% are considering it.
Why did one individual choose to immigrate to Canada with their son?
-The individual chose Canada due to its friendly immigration policies, the ability to travel freely to the US with a Canadian green card, easier application for European visas, and an excellent welfare system including free healthcare for the elderly.
What are some of the reasons driving the third wave of immigration from China?
-The third wave of immigration is driven by factors such as legal risks, high taxes, children's education, healthcare concerns, food safety issues, and environmental quality.
How does the Chinese legal system's lack of independence affect wealthy individuals considering immigration?
-Despite detailed legal provisions, the lack of judicial independence and issues with enforcing judicial rights and human rights make the wealthy feel insecure, which is a main reason they immigrate.
What is the term 'offshore fishing' as used in the context of local governments in China?
-'Offshore fishing' refers to local public security bureaus setting up traps to target wealthy people from other regions, freezing their accounts, and extorting money from them.
What is the top income tax rate in China, and how does it compare to other countries?
-The top income tax rate in China is 45%, which is higher than in Hong Kong, Singapore, and even popular immigration destinations like the US and Canada.
Why are many wealthy Chinese families interested in immigrating for their children's education?
-Many wealthy Chinese families are interested in immigrating to give their children access to top-tier education models offered by prestigious private schools and universities in countries like the UK and the US.
What are the environmental concerns that lead some wealthy Chinese to immigrate?
-Rapid growth in China has led to worsening environmental issues, particularly air and water pollution, which pose serious threats to people's health and quality of life.
Outlines
🏦 Wealthy Chinese Immigration Trend
The script discusses a significant exodus of wealthy individuals from Shanghai, with approximately 10,000 people leaving and taking 68 billion yen with them. Contrary to popular destinations like the US and Canada, they prefer smaller European countries due to favorable immigration policies. Greece is highlighted as an attractive destination with no age or language restrictions and a quick processing time. A report from China Merchants Bank and Banan Company reveals that 27% of wealthy Chinese individuals with assets over 100 million yen have already immigrated, with 47% considering it. The script also shares personal stories of Beijing residents who have immigrated, often for their children's education and improved quality of life. It touches on the reasons behind this trend, including the desire for better education, healthcare, and the potential for legal and financial security.
📉 Legal Risks and Economic Insecurities
This paragraph delves into the legal and economic factors driving the wealthy Chinese to immigrate. Despite China's economic growth and improved social and political environment, the legal system's incompleteness and weak private property protection contribute to a sense of insecurity among the wealthy. The script mentions 'offshore fishing,' a practice where local authorities target wealthy individuals from other regions, freezing their assets and extorting money. A specific case in Leing Province is cited, where a company's financial officer was arrested, and the company was coerced into paying a sum to avoid jail time. The narrative also points out that despite regulations against such practices, they continue to occur, indicating a lack of legal protection and enforcement.
💼 High Taxes and the Pursuit of Education
The script outlines the high tax rates in China, which are among the highest globally, as a significant factor prompting wealthy individuals to seek immigration. It contrasts this with the lower tax rates in countries like Hong Kong, Singapore, and the US. The narrative also emphasizes the importance of education for wealthy Chinese, who seek to provide their children with better educational opportunities abroad. The rigidity of China's education system and the appeal of Western educational models are highlighted as reasons for this trend.
🏥 Healthcare, Food Safety, and Environmental Concerns
This paragraph addresses the concerns over healthcare, food safety, and environmental quality as reasons for the wealthy Chinese to immigrate. It mentions that while public healthcare is accessible, the wealthy lack confidence in its quality and reliability. Food safety scandals and environmental pollution are also significant concerns, leading to a preference for countries with better standards in these areas. The script suggests that creating a safe, reliable, and competitive environment for investment and living could help reverse the trend of wealthy individuals leaving China.
Mindmap
Keywords
💡Immigration
💡Wealthy Individuals
💡Investable Assets
💡European Countries
💡Legal Risk
💡Tax Evasion
💡Education Resources
💡Healthcare Services
💡Food Safety
💡Environmental Quality
💡Capital Outflow
Highlights
Approximately 10,000 wealthy individuals have left Shanghai, taking 68 billion yen with them.
High-tech America and laidback Canada are not the top choices for emigration; smaller European countries are preferred.
In Greece, purchasing a house for 250,000 allows an entire family to immigrate with no age or language restrictions.
A report from China Merchants Bank and Banan Company reveals that 27% of wealthy Chinese have already immigrated, with 47% considering it.
74% of super-rich Chinese have immigrated, setting a world record.
Personal stories of Beijing residents sharing their experiences of immigrating with their children to other countries.
Canada's friendly immigration policies and excellent welfare system are attractive to immigrants.
Wealthy citizens are forming groups and planning to leave China, with rumors of billionaires moving overseas.
Some wealthy Chinese resort to illegal means to embezzle money and move overseas.
China is experiencing its third wave of immigration, with over 10 million people living abroad.
14% of China's high net worth individuals have already immigrated, with 46% planning to do so.
Wealthy Chinese have invested a total of 36 trillion yen overseas despite strict capital controls.
Legal risk, high taxes, children's education, health care, food safety, and environmental quality are driving the immigration trend.
China's legal system's incompleteness and lack of judicial independence contribute to the sense of insecurity among the wealthy.
Local governments in China have been known to use public authorities for 'offshore fishing' to extort money from the wealthy.
China's high income tax rate of 45% is one of the highest in the world, prompting some wealthy individuals to seek lower-tax jurisdictions.
The Chinese education system's rigidity and focus on exams are driving wealthy families to seek education abroad.
China's public health care system's issues and the lack of confidence in its quality are pushing the wealthy to immigrate for better healthcare.
Food safety scandals and environmental pollution are serious concerns prompting immigration among China's wealthy.
The mass exodus of China's wealthy is a concern for the country's future, as they are vital to its economic strength.
To reverse the immigration trend, China needs to create a safe, reliable, transparent, and competitive environment for investment and living.
Transcripts
almost all the rich people in Shanghai
are leaving it's crazy soon there won't
be any left data shows that around
10,000 people have gradually left taking
68 billion yen with them and immigrating
abroad surprisingly high-tech America
and laidback Canada are not their top
choices instead they're opting for
smaller European countries for example
in Greece if you spend
250,000 to buy a house you can move your
entire family there there's no age or
language restriction
and the whole process can be done in as
little as 6 months once one person
applies three generations of the family
can immigrate together it's really cost
effective a recent report from China
Merchants Bank and banan Company found
that among 20,000 wealthy Chinese
individuals with investable assets over
100 million yen 27% have already
immigrated another 47% are considering
it the fact that 74% of the super rich
have immigrated is truly astonishing in
it's a world record that even Russia or
the Middle East can't compete with some
Beijing residents have shared their
personal stories about how they
immigrated with their children to other
countries I spent 10 hours moving from
Beijing to Canada I sold my old rundown
house in Beijing and came here with my
son this isn't Sonia or Greece it's
Canada I spent 4 million yen from the
sale to buy a villa here and start a new
life so why did I bring my son and
choose Canada the reason is simple
Canada has relatively friendly
immigration policies with various ways
to gain residency once you get a
Canadian green card you can freely
travel to the US and applying for
European visas becomes easier the
welfare system in Canada is excellent
allowing elderly family members to live
here and enjoy free health care but my
main reason was for my son's education
he can attend public school for free and
benefit from Canada's highquality
education resources
living in one of the fastest growing
most dynamic countries in the world with
the potential to become a global leader
in the 21st century and already
possessing significant wealth one would
expect to feel fortunate secure and
deeply attached to the nation however
many wealthy citizens are now
surprisingly forming groups and planning
to leave the country one blogger
received news about a wealthy individual
preparing to leave China he
remarked another billionaire has moved
overseas recently rumors surfaced that
the founder of jd.com might be moving to
be neighbors with Jack Ma I checked the
news but there's no solid proof yet to
confirm this however over the past few
years he has indeed been Cashing Out
assets and living abroad at this point
billionaires moving overseas is not
surprising
anymore before him jack ma cashed out 43
billion yen and went to Japan while
panui and his wife donated nearly 1
billion to Harvard and moved to the US
dwan yongping lives in the US investing
in Chinese companies from behind the
scenes and making Easy Money these
billionaires all immigrated abroad once
they've made enough some wealthy Chinese
even resort to Illegal means to embezzle
money and move
overseas there's a wealthy air from Z
Jang who moved to the US with 5.3
billion un his name is Chen Lyn and he's
37 years old originally from Tao Zang he
studied Accounting in the UK and is the
true definition of a rich second
generation his father founded Z Jang
zoton Holdings Group the largest car
dealership in Z Jang and one of the top
50 in the country Chen managed to
Swindle 30 billion yen of which he took
5.3 billion largely due to his father's
wealthy background they reportedly gave
him tens of millions to start his
business bu after failing in the stock
market Chen launched an online P2P
project using a model similar to that of
zonu in Beijing and ding y Fang in senen
they lured people in with Promises of
high returns then siphoned off their
money Chen promised a 10% return and
borrowed the name of a state-owned
Enterprise be Guang investment to
enhance his credibility on top of that
his family's wealth gave him the capital
to deceive people he fled to the US with
5.3 billion un from the 30 billion he
collected reuniting with his family and
now living a happy life in the
US some say China is now experiencing
its third wave of immigration according
to a report by the International
Organization for migration China is the
fourth largest source of immigrants in
the world with over 10 million people
living abroad modern Chinese history has
seen three major waves of immigration
the first wave occurred in 19 30s during
a time of War many people left their
Homeland heading overseas to
survive in just over a decade more than
5 million people left from Southeastern
ports with most heading to Southeast
Asia the second wave began in the early
2000s as education levels in China Rose
leading to a surge in people studying
abroad this opened the door for modern
Chinese immigration during this time the
US UK and Canada became the main
destinations
but now what is driving the third wave
of immigration a recent survey on
China's wealthy class has produced a
surprising and troubling conclusion the
China private banking white paper
published by the Bank of China reveals
that 14% of China's high net worth
individuals those with investable assets
over 10 million y have already
immigrated another 46% are either
planning to immigrate or are in the
process of doing so once the second
group completes the process three out of
every five wealthy Chinese individuals
will hold foreign citizenship estimates
from China Merchant Bank and banan
Company suggests that China's wealthy
have invested a total of 36 trillion yen
5.7 trillion us overseas even though
China hasn't fully opened its capital
account and the government enforces
strict foreign exchange and capital
controls this huge amount of private
Capital has still flowed abroad but more
concern in than the numbers are the
reasons behind this Mass immigration of
China's wealthy research shows that
international migration is often driven
by income differences between countries
however China's wealthy already earn
more than the average income in their
destination countries so income isn't
the main reason they are immigrating
research and observations suggest that
other factors are driving this trend one
of the main factors is legal risk over
30 years of Market reforms have brought
unprecedented economic growth to China
the country's social and political
environment has also improved becoming
more stable secure and free compared to
earlier times especially the cultural
revolution period the status of the
private sector and private entrepreneurs
has also risen significantly but despite
this progress China's legal system
remains incomplete private property
protection is still weak political and
privacy risks remain China's Judicial
System also lacks Independence despite
detailed legal Provisions there are
still major issues with enforcing
judicial rights and human rights living
under the authoritarian regime combined
with widespread corruption China's
wealthy often feel insecure this sense
of insecurity is one of the main reasons
they immigrate a recent case in China
highlights this issue as the economy
slows many local governments have gone
bankrupt in response they've started
using public authorities for what's
called offshore fishing offshore fishing
refers to local public security bureaus
setting up traps to Target wealthy
people from other regions they freeze
their accounts and extort money only
after a portion of their asset is handed
over to the Local Government Can their
accounts be unfrozen in leing Province
the dandong public Security Bureau did
just that they arrested the financial
officer of transin Holdings a guandong
company and threatened to release him
only if they were paid if the company
didn't pay the officer would be sent to
jail this practice is becoming more and
more common in China what's even more
unbelievable is that in September 2020
the ministry of public security
implemented a new regulation it states
that public security bureaus must
request assistance from local
authorities when carrying out operations
in other regions like arrests searches
or freezing accounts cross Regional
operations without local cooperation are
illegal however despite this regulation
there are still reports of unauthorized
operations by local security bureaus
this raises concerns about the
effectiveness of the law and the
protection of the wealthy in China
Chinese lawyer Z sha Yun while exposing
the case pointed out that some local
governments and public security bureaus
even set up traps to lure businesses as
soon as the business or individual
receives Dirty Money their account is
Frozen the risk of being caught in this
trap is almost impossible to avoid when
your account receives money you can't
always verify it if it came from a legal
Source even if you're an innocent victim
cross Regional authorities can still
charge you with assisting cyber crime
this could lead to detention or even a
prison sentence they take not only their
money but also their freedom that's why
media oversight legal defense and
resistance against the judicial system
are crucial on September 17th Hunan
farmer Fang Jun publicly accused judge
wanghao from the shaoyang court of Monda
this case is strikingly similar to the
local government's offshore fishing
plan my name is Fang Jun I'm publicly
accusing judge Wang Hal from the shiyang
court of misconduct for unlawfully
unfreezing three bank accounts belonging
to Sigma technology which held over 22
million y back on September 1st 2013
which took over the sigma project
Contracting buildings one to7 of ulong
Lake Phase 1 from the completion of the
project in December 2017 until now it's
been 12 years and sigma still owes us
over 33.7 million yen in construction
fees because of this over 100 migrant
workers haven't received their wages and
dozens of suppliers have faced Financial
collapse debt collectors have even
chased me down to my house but all the
money we could front is already gone
I've been forced to fight for the
payment every single day and had no
choice but to sue in the shiang court
after two years of fighting I finally
received a final judgment in my favor in
2024 sigma's accounts had been lawfully
Frozen but judge Wang how took advantage
of his position to unlawfully unfreeze
them now all the funds have been
transferred out and we feel utterly
helpless an informed source claimed that
judge Wang how illegally unfr three
accounts belonging to Sigma company
which had been withholding wages from
migrant workers why because Sigma
secretly paid off local authorities
which allowed them to access 22 million
yen in funds again the second reason is
high taxes in China the top income tax
rate is 45% one of the highest in the
world it's higher than in Hong Kong
Singapore and even popular immigration
destinations like the US US and Canada
while some wealthy individuals evade
taxes many don't see it as a reliable
solution the Chinese government often
turns a blind eye to tax evasion by
businesses and celebrities but when
money is tight these cases become
leverag for the authorities to seize
assets this year we've seen the 30-year
retrospective audits in the police tax
combined operations earlier this year
several Chinese companies were told to
pay back taxes these included Shanghai
shho PKU healthare and H Tha Securities
some even had to pay late fees which
were so high that it could bankrupt them
the more they owed the more penalties
they had to pay over 20 provinces have
set up police tax combined operation
centers to crack down on tax evasion but
using the word operation has caused
anxiety even whoi Jing the former editor
of global times publicly said that
handling tax issues like a milit AR
operation damages private sector
confidence these events along with cases
like VI group being forced to pay taxes
dating back 30 years have led people to
speculate about a 30-year retrospective
audit the CCP denied these claims saying
the tax authorities haven't organized
Nationwide or sector specific Audits and
there's no plan to look back 20 or 30
years but the facts say otherwise Hub
zuu Jang wine industry group was ordered
to to pay 85 million yen back in taxes
and this amount was traced back to
1994 in March Ningbo bway chemical
technology received a notice to pay 500
million yen in back taxes the local tax
Authority claimed the companies heavy
aromatic hydrocarbons should be taxed as
such but the company disagreed because
there's no clear regulation on how these
products should be taxed the constantly
changing tax policies in China has
sparked outrage many many people believe
the governments Financial struggles are
forcing you to extract money from
businesses during this time wealthy
individuals are likely targets for the
government this is why many wealthy
people are choosing to immigrate to
countries with lower taxes it's a safer
long-term solution the third reason is
children's education in Chinese
traditional culture education is heavily
valued and many people now realize that
the current education system is too
rigid it focuses too much on exams and
grades and doesn't encourage creativity
or well-rounded development prestigious
private schools in universities in the
UK and the US offer education models
that attract China's wealthy giving
their children access to top TI
education is a major reason why wealthy
Chinese families immigrate the fourth
reason is Health Care China's Public
Health Care system has many problems
similar to its education system while
low-income families often complain about
the difficulty of getting Medical Care
and the high costs the wealthy in China
lack confidence in the quality and
reliability of the healthcare services
available in developed countries like
the US and the UK people can truly enjoy
affordable healthare meanwhile the
wealthy can also pay for Private health
care giving them access to much better
medical options the fifth reason is food
safety food safety scandals have been a
recurring issue in China from tainted
powder to the recent gutter oil Scandal
even during this year's mid-autumn
Festival some have reported moon cakes
containing sodium
dehydroacetate a strong preservative
that could harm human organs if consumed
over time earlier there was also the
Scandal involving food oil being
transported in oil tankers these events
raise serious concerns about the food
safety in China making it another reason
why wealthy individuals immigrate to
ensure they have safe healthy food the
sixth reason is Environmental Quality
China's rapid growth has come at a cost
of worsening environmental issues
particularly air and water pollution
these problems pose serious threats to
People's Health and quality of life many
wealthy Chinese choose to immigrate
because they can no longer tolerate the
poor environment reports show that North
America is a Top Choice for wealthy
Chinese immigrants the US and Canada
account for 77% of these moves while the
rest head to the UK UK Australia
Singapore or Hong Kong but why don't
American billionaires like Bill Gates or
Warren Buffett want to leave their
country the US is not only a land where
wealth is created but also a place where
it's protected this shows that while
China's economic power is growing its
soft power still lags behind that of
developed Nations however the mass
Exodus of China's wealthy isn't a good
sign for the country's future while some
wealthy individuals may have gained
their fortunes through illicit means
most have built their wealth through
hard work and Entrepreneurship these
private entrepreneurs are a vital part
of China's economic strength it's
strange that as China Rises rapidly its
most successful individuals are leaving
in waves in a globalized world human
capital like Financial Capital can vote
with its feet and move across borders
developed countries and regions has
special policies to attract
International talent and investment for
a developing country like China he human
capital is especially valuable and must
be respected but China's policies to
retain its Talent are far from perfect
and at times seem to trap the wealthy
yet the talents experience and capital
of these wealthy individuals are crucial
for China's future development if
China's wealthy continue to invest in
their Homeland start businesses create
jobs for the poor and pay taxes to
improve Public Services the country
could eliminate poverty maintain rapid
economic growth and raise overall living
so how can China reverse the immigration
Trend among its wealthy creating a safe
reliable transparent and competitive
environment for investment business and
living should be a top priority for
policy makers
[Music]
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