74% of China’s Rich Emigrate, a World Record, Outpacing War-Torn Russia and the Middle East

Summary

The 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

00:00

🏦 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.

05:01

📉 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.

10:01

💼 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.

15:02

🏥 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.

Keywords

💡Immigration

Immigration refers to the act of moving to a different country with the intention of living there permanently. In the context of the video, it discusses the trend of wealthy individuals from China choosing to leave their homeland for various reasons, such as seeking better opportunities, education, and quality of life. The script mentions specific countries like Greece, Canada, and the US as popular destinations for these immigrants.

💡Wealthy Individuals

Wealthy individuals are those with significant financial resources and assets. The video focuses on this demographic leaving Shanghai, taking substantial capital with them, which is a significant economic and social issue for China. The script provides statistics and personal stories to illustrate this phenomenon.

💡Investable Assets

Investable assets are financial instruments or properties that can be invested in to generate returns. The video mentions that among wealthy Chinese individuals with investable assets over 100 million yen, a significant percentage have already immigrated or are considering it, indicating a potential capital outflow from China.

💡European Countries

The script highlights that smaller European countries are becoming preferred destinations for Chinese immigrants over traditional choices like the US and Canada. This is exemplified by Greece, where purchasing property can facilitate the immigration process for the individual and their family.

💡Legal Risk

Legal risk refers to the potential for negative consequences due to inadequate or unclear legal frameworks. The video suggests that the incomplete legal system in China, weak private property protection, and lack of judicial independence contribute to the sense of insecurity among wealthy individuals, prompting them to immigrate.

💡Tax Evasion

Tax evasion is the illegal act of not paying taxes by willfully avoiding them or underreporting income. The script discusses how some wealthy Chinese may evade taxes, but also how the government's efforts to crack down on tax evasion can create an environment of uncertainty and fear, leading some to leave the country.

💡Education Resources

Education resources refer to the availability and quality of educational opportunities. The video mentions that one of the reasons wealthy Chinese families immigrate is to provide their children with access to high-quality education systems and resources, which they perceive as superior to those in China.

💡Healthcare Services

Healthcare services are the medical services available to individuals. The video points out that the wealthy in China may lack confidence in the quality and reliability of local healthcare services, which is another reason driving immigration, as they seek better healthcare options abroad.

💡Food Safety

Food safety is the assurance that food will not cause harm to consumers when it is prepared and eaten according to its intended use. The script mentions food safety scandals in China, which have raised concerns and are driving some wealthy individuals to immigrate to countries where they believe food safety is better regulated.

💡Environmental Quality

Environmental quality refers to the condition of the physical and biological components of the environment, including air and water quality. The video discusses how worsening environmental issues in China, such as air and water pollution, are contributing factors to the immigration trend among the wealthy who seek a healthier living environment.

💡Capital Outflow

Capital outflow is the movement of capital from one country to another. The video suggests that the immigration of wealthy individuals is not just a human exodus but also an economic one, with billions of yen being taken out of China, which can have significant implications for the country's economy.

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]