Money, as the saying goes, leaves China. The country’s millionaires and billionaires are emigrating in record numbers, and an emigration of 15,200 people is expected in 2024.
Henley
The reasons given by immigrants to justify their move vary, as expected, but most cite uncertainties implicit in China’s current economic scenario and how those uncertainties raise questions about long-term investment returns. The current housing crisis and real estate turmoil figure prominently in this uncertainty assessment, specifically because falling asset values have hurt household wealth and thus cast doubt on China’s overall economic expansion prospects. . Some, in their decision, refer to the downgrading of China’s monetary outlook through two rating agencies, Moody’s and Fitch. An unstated motivator, and for obvious reasons, is President Xi Jinping’s hostility toward proprietary corporations and private wealth in general.
Singapore has long been the preferred destination for such immigrants. But recently, Singapore has stepped up its surveillance of incoming Chinese wealth. Even those who have nothing to hide would likely prefer to avoid the hassle and loss of privacy that a refuge in Singapore now entails. Canada and the United States will continue to be popular opportunities for the Chinese and their money. The UAE has also gained popularity as it offers zero income tax, a lavish lifestyle and “golden visas” that make investment budget management easy and private. Japan has also gained popularity due to its proximity to China, its horny lifestyle, and the fact that it can promote itself as one of the top countries in the world.
To be fair to China, it is not the only country experiencing an exodus of Americans and wealthy families. South Korea and Taiwan have also noted such departures. In the case of those two countries, security is the main concern rather than the economy. In the first, North Korea’s belligerence is of great importance. For Taiwan, it is China’s belligerence that is galvanizing others who can put their lives, property and families out of harm’s way. Questions about the United States’ willingness to protect Taiwan will undoubtedly have an effect, especially if Donald Trump enters the White House in 2025.
China watchers may notice two telling messages in this migration story. The first is that it makes an obviously negative comment about President Xi Jinping’s economic management. Second, the outflow of this wealth will make Beijing’s efforts to revitalize the Chinese economy even more difficult, even if there is no way to quantify the effect.
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