Editor’s Note: The following article was originally published in Economic Observer. English versions of their articles, and others from top global media, are produced by Worldcrunch.com.
By Xin Haiguang
BEIJING - Is China facing a "Wealth Drain"? Do too many of the best and brightest - and above all, richest - Chinese dream of packing up their accumulated capital, and going to live abroad?
According to a new study, a majority of Chinese who have more than 10 million Yuan ($1.53 million) worth of individual assets find the idea of real-estate investment a lot less tempting than so-called “investment emigration.”
Nearly 60% of people interviewed claim they are either considering emigration through investment overseas, or have already completed the process, according to the 2011 Private Wealth Report on China published by China Merchants Bank and a business consulting firm Bain & Company.
The richer you are, the study suggests, the likelier it is that you resort to emigration. And among those who possess more than 100 million yuan, 27 % have already emigrated while 47% are considering leaving.
The fact that more and more rich Chinese are seeking to emigrate is turning into a hot topic in China, and statistics prove that the trend is a real one. According to Caixin online, a Chinese website specialized in finance, the compound annual growth rate of overseas investment by Chinese individuals approached 100% between 2008 and 2010. The compound growth rate of the Chinese who used investments to emigrate to the United States in the past five years is 73%.
So why are wealthy Chinese so eager to leave their country? The simplest answer is that there are a lot of things in China that even the richest cannot buy (emigration is obviously not one of them). China’s rich are fond of saying that nothing “is a problem if money can solve it.” Among the irresolvable problems that spark emigration, there are material ones, and emotional ones.
The former includes issues like laws and regulations, the education system, social welfare, inheritance tax, quality of air, investing atmosphere, food safety, ability to travel, and so on. In short, these are the material factors that any State must provide to its people in order to ensure their happiness. In emerging countries such as China, these factors are still often found wanting.
Read: China leading to worldwide wine speculation.
Emotional reasons behind rich people’s immigration are generally linked to the lack of a sense of personal safety, including safety of personal wealth, as well as fear about an uncertain future.
It thus appears that it is a certain “lack of well-being” that is pushing wealthy Chinese to emigrate. The results of the Private Wealth Report are very much in line with other studies. A recent Gallop Wellbeing Survey showed that most Chinese people feel depressed, even as China has sky-high economic growth rates that Europe and America can only dream of. According to the survey, which asked respondents to choose between “thriving,” “struggling,” and “suffering” to describe their situation, only 12% think themselves as “thriving,” while 17% describe themselves as “suffering,” and 71% “struggling.” The number of Chinese who feel that their life is improving is comparable to the number of Afghans and Yemeni who feel the same way, while the number of persons feeling they are “struggling” is approximately the same as in Haiti, Azerbaijan and Nepal.
It is a paradox that, in a country where more and more people are getting richer by the day – albeit to the detriment of the poor, who have benefitted very little from the country’s new wealth – the general feeling of well-being should remain at rock-bottom. The poor grumble while the rich flee.
Read: Building China with a wrecking ball.
The truth is that, unless they emigrate, the wealthy have to suffer from the same causes of unhappiness as the poor. Take food safety. Last year, when a Chinese woman living in Canada was asked by theInternational Herald Tribune why she had left her country, she said it was because of the Sanlu (toxic baby milk) case, and also because of the “hatred against the rich.” Her answer highlights the fact that, as the gap between the rich and the poor is getting wider, and the poor are complaining more and more, the rich are also getting more nervous. Some rich people even worry that the “redistribution of wealth might start all over again.”
Although the danger seems overblown for now, people are starting to wonder where the public hatred of the rich might lead. The wealthy also know that they bear some of the responsibility for the unequal distribution of wealth. The so-called “original sin of wealth” is not totally without foundation, and it is often difficult for the rich to stop enriching themselves. Fluctuating market conditions bring out a survival instinct that sometimes makes them commit illegal or immoral acts. Once they realize this, they often chose to avoid the trap by emigrating and starting afresh.
The situation would not be as serious, of course, if the number of people deciding to leave were low. But once a few personal choices take the shape of a massive drain, the consequences of their departure on the economy and on society, through the example they set, can be dire.
An even bigger cause of concern is that, when rich people pack their money and leave, not only are they no longer identifying with their country, but they are also avoiding their social obligations. While the reason behind these people’s decision matters little, the undeniable fact is that they make money from this society, but they refuse to give anything back.
Rich people who decide to move to a foreign country should know that, by doing so, they are stoking the dissatisfaction among those who stay behind. The poor get angrier because they cannot leave, and their hatred towards the remaining rich grows even bigger. This is the most corrosive thing that can happen to a society.
The views expressed in this article are solely those of Xin Haiguang. All rights reserved ©Worldcrunch – in partnership with the Economist Observer.
© 2012 Cable News Network. Turner Broadcasting System, Inc. All Rights Reserved.
| Advertising practices | Advertise with us | About us | Work for us | Help
All the rich Chinese heard that if they come to the US and then ship jobs to China, they can become even richer! And get tax breaks to do it. And they will vote for me for president! Go China! I can see you from my back yard!
You couldn't afford it on the 5 Mao you earned from that post! LOL!
His post is a classic example that they use our politics against us.
I think they're coming here to capitalize on free health care, since illegals get free stuff off the backs of the middle class, why not the rest of the world! As ambassador to the world, I welcome you all to drain our economy...btw we are already in the process of embracing your political structure too... soon we'll drop the white and the blue and keep everything red and in stars! YEAY
Where do I get the free health care. I'm paying $600.00 a month for health insurance.
You have to be unemployed and illegal to get all the freebies. You might even qualify for a brand new Beemer.
Yeah they packed and scattered abroad like a pack of wolves. They will start a modest business there and would capitalized anything they could get. From tax breaks, freebies to hiring illegals and promot cheap labors. And as the business going good, they would attract and invite other foreign investors to expand or create a bigger business. They would target the masses by venturing into businesses which involves basic and common commodities. They will either make business ties or directly bribe some crooks in the government to back them up whatever they do. Then they will create a cartel together with other companies with the same nature of business to indirectly monopolize it and get rid of the competition. They would manipulate prices and make it dance in the tune of cha-cha, which is 3 steps increase and 1 step decrease that would double or tripple the price of a certain commodities in just span of one or couple of years that would give the same effect to their capital and investments. But they will only give the (other foreign) investors a handful of it and sack all the money and ship it back to China.
And also in effect, inflation rate in that particular country they're in will simultaneously rises. And if a country economy becomes unstable, probably it will resort to borrowing. Then the question is what country it would likely to borrow? I think there's no need to mention the answer. So it's like hitting two birds in one stone.
But it was just a part of a grand scheme there still some more like flooding their junks (ie. appliances, computers, gadgets, cars, fashions) and smuggled items in all markets of the worlds with predatory prices to kill it's competing businesses. They will promote cheap labor or persuade other business to export jobs to China for cheap labor. That will cause closure of some businesses and sky-rocket the unemployment and inflation rate.
And Grandest and the most effetive part of the scheme that plays a big role in the economic downturn was....banking and credit cards.
China's big and reputable banks will used their good reputations to deceive American huge investment firms.
The strategy was simple yet very effective. They were indiscriminately issuing credit cards with high credit limit to those people who neither have a substantial deposits nor the capacity to pay. They will just sold their uncollectibles I mean, receivables with a discount to huge American Financial firms. And those firms end-up losing huge amount of money from collection jobs and filling of charges against to debtors that at the very start don't have the capacity to pay.
So in the article's title saying and I quote, "China's "wealth drain": Its rich emigrate". Nope, they are not packed to leave, they are sent as economic mercenaries and they keep on sending more until China ultimately rule in the economy.
In the end China will rise while other countires will fall down the drain. And that includes but not limited to US.
It didn't say they're coming here specifically. They're going everywhere and nobody wants them around. There was a piece on NPR this morning about the Chinese in Italy. They're running sweat shops making clothes using Chinese fabric which is dirt cheap, but they can tag it 'Made in Italy' and fetch a huge price for it.
I watched your program on June 12 for the first time. In my opinion Ann Coulter is not a positive participant in the roundtable discussion. She is dismissive, arrogant, combative and domineering....all of which prevents the others from contributing. I always enjoy hearing the perspective of all sides of an issue, regardless of my personnal bias...how else is one to make an informed decision? It was not possible on Sunday with her dominating the "discussion".
You really beleive you are talking to Sarah Palin don't you? What does that have to do with the issue of China's wealthy emigtaing?
Sometimes I dance, but when I saw Samantha packing her toothbrush I knew that it was impossible to convince her of her abilities. Keep going Tabatha and don't let the barking dogs change what you know is in your heart.
Anne Coulter is overbearing but she also is brilliant and dynamic and although I find her repulsive............I also find that you are JEALOUS!
Fareed,
I've watched your show from its beginning. It was the kind of show I'd been waiting for: reasoned discussion from people who know what they're talking about, interviews with people the major networks and news shows apparently never heard of, and perspective from you. Please don't go the way of everything else out there. Pairing up people like Ann Coulter and Eliot Spitzer only leads to the kind of partisan shouting matches I abhor. It if continues, you've lost at least one viewer.
Fareed needs to go back to the middle east where he is wanted dead or alive for talking too much..........
Fareed is from India, not the Middle East .. get your facts right !
This shouldn't be all that surprising. After all, it was written in one of the books Fareed suggested on his show ('When China Rules the World' by Martin Jacques). Based on what I read in the book, I think Fareed is being too optimistic about China's growth and success. I would suggest reading it to get a sense of the general direction that China is moving in right now.
Money alone can buy the quality of life. A decade ago many overseas Chinese with foreign passports returned to China, wanting to be part of the economic growth. Now many want to leave the countr! Have they amassed enough or they are disillusioned?
Looking for safety and security knowing how unstable politial situation in China may someday be. They prefer Canada to the US and have driven real estate prices in Vancouver to New York levels. It's a form of capital flight but it passes unnoticed by authorities if they choose investments and relocations outside the US.
You are absolutely right Frank. Many wealthy Chinese fear that the Chinese government may take all their wealth away at some point.
If I lived in a country without freedom of religion, freedom of speech and that was a police state (only the government can own guns) I would think about leaving it if I was rich. If you live in China and post on the internet that Tibet should be independent you may find yourself in jail for many years.
America is bad enough with the USA PATRIOT Act, the US forbidding travel to Cuba, and police seizing property of those charged, but not convicted, of certain crimes.
Money CAN'T buy them the quality of life in China, like clean air, space and nature.
You are right, Frank Airport, it's alarming how wealthy Chinese buy up companies and real estates abroad, an act short of colonialism.
If you want the chinese to democratize and become an industrialized nation of free commerce, you are not allowed to get upset when they engage in capitalistic behavior like the west does the purchasing of real estate and companies. That is called BUSINESS. It is not colonialism....unless of course you are getting beaten at your own business game...then the whining starts. China will implode upon itself.
Make it, right now Chinese people are experiencing the very same unbridled, unregulated capatalism the USA went through in the 1800s. Unregulated capitalism is just like evolution: only the most aggressive and brutal survive and it isn't pretty at all. Chinese people have no weekends, unions, benefits, safe workplaces or quality standards and both workers and consumers of the products suffer while investors profit immensely. The rich get richer and the poor get poorer. It is a recipe for disaster. Highly dissatisfied masses who feel they have little to lose are extremely dangerous. The Chinese govt. needs to start protecting the poorest citizens by overseeing fair practices and not only for morality, for the survival of their decrepit government.
I suppose they also bought you?
Neither. I think what's happened, by and large, is that the Chinese who returned to be a part of the growth were met with obstacles taller than the great wall. In several cases that I'm personally familiar with the entrepreneur could not tap in to the Chinese market despite knowing Mandarin fluently (being born, raised and having family still in China), having business connections and plenty of guanxi due to the protective laws that are enforced by the PRC. You see, unlike the USA, China actually cares about its people and will not sell them out for monetary gain. We saw our President recently condoning retention of those foreign nationals who come here seeking higher education, offering them jobs, when there are millions here already perfectly willing and able to take on those same roles. You would not see China leaders making the same mistake because compassion for community is a fundamental Chinese attribute. We in the USA sell out other Americans so the corporations can prosper and take over even more small companies. It's a vicious cycle that is out of control. Neither Democrats or Republicans have the will or power to stop it. What we need is a revolution against large corporations, in other words, we need our own walls.
Go ahead Charles. get your own walls and becpome like China.
Absolutely fascinating article. While I wish our Chinese friends no ill will, this article gives me hope the chinese are not quite the threat they seem to be.
It's really sad we humans are a threat to each other for every reason. Redemption by Jesus is longed for.
There would be a lot more Christians in the world if Christians started acting like Jesus, and stopped going all around the world acting like bullies and starting wars.
As long as these mongrels do not come to America I will accept them as humans...........
Anger at the rich exists the world over. Its just that some country's let the rich get away with anything they want.
It's different when someone earns wealth by working very hard and operating fairly and within the law. It is something else when people become wealthy by taking unfair advantage of others (including manufacturing fraudulent products or services or paying your workers well under minimum wage).
??? This was a news in Asia months ago. Where were you, CNN? This way, Chinese can truly take over everywhere, huh?
In addition to that no one is holding them accountable or bother to investigate their source or funds."child labor". No one is interested in hearing the stories of their housekeeps' "human rights" abuses.
Is investing massively in North America the Wealthy Chinese drug of choice?
Right now the Chinese are buying up Vancouver B.C., housing and market values are skyrocketing!!!!!hahahahaah!
My salary is quite above the family average for Canada and I live alone–yet I can't afford to buy a place here, I rent. Foreign investment has certainly contributed to this. Yet I can"t blame the wealthy for moving here and investing in BC. I travel to China 2 or 3 time every year for work and I would certaily leave as well. There's a lot going for China, but living there over BC? Not a chance.
Exactly. I live in Vancouver and was born and raised here and I can't afford to buy a house because of this trend. Sadly, we are now looking to move out of the city altogether because of it. I just saw a small, two-bedroom, two-level townhouse in my neighborhood outside of the city on the market for $498,000. The government is welcoming them in with open arms and open bank accounts, but I can see that the backlash is starting to spool up...
Make sure they stay in Canada.................
Now the rest of the world can go through the labor strikes and protests that the US went through a century earlier. Globalization has a longer, more 'formal' name; it's called, "The Global Initiative for Environmental, Labor, and Tax Law Evasion". The Gilded Age for a select few is the Excrement and Slum Age for the vast majority of others.
I believe that history will remember the silence of Western leaders and news outlets. Through their policies of free trade with Communist China, they have continued to lavish rewards upon the communists, dictators, tyrants and thugs who oppress China. With their deliberate blind eye for this persecution, they have brought shame to a Western world that once vowed, "Never again" in the face of genocide.
Let me be clear. Their China policy is no better than "leaving the Jews in the gas chambers." Their China policy is one of moral cowardice, and reveals craven indifference to human suffering. Western China policy is akin to a crime against humanity of its very own.
People forget exactly what the Chinese Communist Party (CCP) truly is. A brutal regime that has murdered 80 million of its own people since 1949 and is concerned with nothing but its own survival.No human rights whatsoever and an enemy of the free world. The only reason any country is dealing with the cruel CCP is corporate greed. The same corporate greed that censors our own media from telling us the truth about the CCP. To learn more facts one may go on line and read The Nine Commentaries. Thank you for your consideration.
Please stop going on about something that you have no intention of caring or care about. You post this on multiple topics. Since there are ome ignorant pigs who keeps on calling people talling what China's actually like the 50 cent army. I now deem you the American tollit paper bill.....you know with soo many bills that are printed that aren't worth anything. You're one person organization ATPB also known as At The Public Bathroom, lol.
What jeff said is fact, what Thatsnotrue:[ said is ... notrue:]. Why? because garbage man is being there and knows that!
So, if you want to live in peace, belong to neither US nor China but the earth and knowing yourself as a garbage man..seriously!
Interesting article. I had no idea that this was a problem. The rich must be leaving becasue they have little influence over the actions of the government. I always assumed that as the Chineese became wealthier, they would demend more from their government. If this is not the case, then at some point I expect the poor masses to start a money grab for whatever is left. Not good for China.
I like to rub my breakfast sausage.
Why would anyone want to leave the self-proclaimed Superpower just as the world is beginning the Chinese millenium? Even the Chinese don't want to live in China. Don't blame them, who wants to live in a slave labour camp?
Then again, the ones leaving are the very ones to blame for exploiting the Chinese and collaborating with their Walmart masters.
Have you ever been to Flushing, NY? That's where all the Chinese money goes.
That is why Flushing NY is flush...............
Dear Fareed, thanks for sharing this article with us on your site. Please let us know if this article has been read by mainland chinese. I feel that China has such a tight grip on information that their local people do not have much idea of what transpires in this world.
Even if China becomes a great power due to its currency reserves and military prowess, i feel that it will not be very liked in this world because of its hegemonistic tendencies. See how it has been multiplying its enemies from vietnam to philippines to japan, south korea , dalai lama, tibet, taiwan etc. The only friends they have are north korea, iran and terrorist state pakistan. Unfortunately friendship with pakistan will be its downfall because pakistan will nuke some countries , and china will have to pay all the war damages.
CNN is not blocked in China, and almost everyone in China knows how to use a proxy server or VPN to get to blocked sites anyway. Also, information is not nearly as tightly controlled as the propagandists in the US media would have you believe. However, there is a great deal of information withheld from the American people by the US media. For example, did you know that China has more democratic elections than any other country in the world? I'm guessing you didn't.
Also, ask yourself why the US media censored comments made by General Liu Yazhou when he publically stated that China will be a Western-style democracy within ten years. General Liu is the political commissar of China's National Defense University and is in charge of political indoctrination for China's top military leaders. His comments were widely published outside the US, but were completely censored by the US media. At least the people in China know their media is controlled by the government. The sheeple in the US are clueless and brainwashed.
Haha China has the most democratic elections. What a joke. They have one political party you moron. The US media doesn't censor anything. There is no official US media. Anyone can start a blog and report anything they want. There are insane people posting conspiracy theories all the time on the US internet. No one stops them. People can say anything they want in the US. Unlike China the US government doesn't control or censor anything.
Imagine how the native people of Dubai feel. Dubai leadership wants to bring its emirate into the world spotlight and it needs talented, driven people to do that. However, I do feel for the natives who are largely being left out for lack of education and talent base. They have also been priced out of their own city by highly paid foreign nationals. I see both sides. We all have to get with the program in order to compete as well as regulate capitalism to keep prices reasonable for producer and consumer.
As I've always said "China will eventually implode". It took decades if not a century for America to get to the industrialized point we're at now, putting into place many painstaking rules and regulations as not to kill the workers or destroy the environment and China's been at it how long...10..20 years They're moving way too fast and getting way too big to sustain the momentum of prosperity. The rich and poor gap will get wider faster and then revolution will prevail and destroy the country faster than it was built up to at this point. Read the signs people, it's coming!!!!!
Sir,
A pax upon your abode.
School Boy
Gee, this sounds a lot like the US except that the rich aren't leaving; they are simply creating the Tea Party and convincing the easily led and undereducated to support their policies.
@Lou, the rich are leaving the US faster then what you think, or at least their money is. The rich travel to central america and the islands and take a bit of $$$ with them every time they go. They will keep their US citizenship, so they can come back to vote (for those that protect them) and apply for their social security and medicare. They own homes in those foreign countries and r treated like kings/queens by the locals. It disgust me, to know that the $$$$ was made from US sweat, but not spent in the US economy.
A Pew Poll in 2010 found that 87% of China's population was satisfied with their national conditions. It also found that 91% believed China's economy was in good shape. In both cases, these were the highest for any country in the world. The US scored 30% and 24% in the same areas.
Having dealt with many rich people in China while there on business, I can tell you exactly why wealthy Chinese want to emigrate...ease of travel. Developed countries make it almost impossible for people from China to visit. 80% of visa applications to the US are denied. Rich people like to travel, and if they obtain citizenship from a developed country, travel is much easier.
Over the past several years, Gallup has lost almost all of its credibility. Time and time again, they have been found to have expressed clear bias in their polling. Usually this has taken the form of a strong conservative bias, but they also have a stong US bias. They are considered most accurate when it comes to US presidential election polling, but in 2008, they were 17th out of 23 polling organizations in terms of accuracy. It's really sad to see a once credible organization become a propaganda tool, but Gallup is not longer an accurate source of information. If you want accurate information, use Pew instead.
Citation needed. That means you need to provide a link to your attacks on Gallup. You say Gallup is biased? Prove it. Just because you use an American name, everyone here still understands that you are a paid chinese troll. Your country sucks. Your pollution is horrible. Your losing farm land to desert at an alarming rate and even know your unable to feed your people without importing food. You jail or shoot anyone who disagrees with the communist party. You have roving death vans that take the organs of the thousands of people who are executed. Your population is aging at an alarming rate due to the 1 child policy with no social support structure in place. You censor the internet. I could go on and on but its obvious no one wants to live in China. Its a complete shit hole.
How do these people get millions of dollars in a communist society? OH I GET IT! YYYYEEEAAAHHHH...........
Who cares.......I don't like MAO.....I like CATSUP
Whoops, I was replying to j. von hettlingen's post above which reads:
"Money alone can buy the quality of life. A decade ago many overseas Chinese with foreign passports returned to China, wanting to be part of the economic growth. Now many want to leave the countr! Have they amassed enough or they are disillusioned?"
So my "NEITHER" response is in answer to 'amassed enough or disillusioned'.
America needs Sarah Palin!
Vote with your ass not your brain!
You can always take the trash out of the trailer, but you can never take the trailer out of the trash.
...drool...
Will someone please pass the buttered bacon ?
I will never get brain cancer from a cell phone. And it's not because I don't have a cell phone either. It's because I don't have a brain.
Sarah Palin believes that the Flintstones is a factual documentary of early man and that early automobiles really were foot powered.
You mean it's not?
This is definitely an example of "Be careful what you wish for, you just might get it" having some serious, and devastating, repercussions. Ha ha
the position is overly simplistic. a good portion of the millions chinese accumulate is not from local sources, but global. china's meteoric rise in wealth is fueled and funded by selling goods manufactured in china in a global market. it all circulates!
How can someone be rich in a communist/socialist country? When you see pictures of people in China you always see these poor farmers living in shacks, or slave workers in factories making $0.10 a day. Where is all the US's money going?
China is a lot like the US. The well-connected, literate urbanites have an advantage over their poor, rural countrymen. They become businessmen who employ masses of the poor at slave wages. They keep the lion's share for themselves.
The biggest difference between here and there is that the rich Chinese have the good sense to keep a low profile. Donald Trump, for example, would not do well there. That's why all you see are the factory workers.
One overlooked factor in the migration of rich Chinese: China's health care system. Even the rich are not assured of receiving good medical treatment in China. In Shanghai, most rich Chinese insist on seeing western-trained doctors in private hospitals that only cater to the rich. The percentage of Chinese children in Shanghai with asthma is staggering and older rich Chinese are vulnerable to upper respiratory infections. And of course, most of the municipal water in China is undrinkable. The system that made many Chinese wealthy also created a toxic environment for their children. I would rather be poor but able to breath clean air, drink clean water, and not worry about whether my children were accumulating toxins in their young bodies. Peter Klika, Kapaau, Hawaii
For all of your points............ummm you realize there's Chinese medicine right? It's not witch craft or what ever randomness you can come up with......but perfering the west in medical terms.......you're about 1-200 years to late. Western medicine never surpressed Chinese medicine. And the west's way isn't alwas better......from your multiple posts, you sound bitter....about their wealth?
And another factor: Being rich in China doesn't mean that someone with governmental connections won't try to take your wealth away. The Chinese legal system is still run by the communist party and if they want to confiscate your wealth, they will. I don't know any wealthy Chinese (and I know many) who do not already have a second passport, a bank account in Singapore, a second home overseas, and an exit plan. Peter Klika, Kapaau, Hawaii
Last, most wealthy Chinese choose Canada over the United States for immigration purposes. Guess why.
Immagration is not new, all the country want the rich to come to their's (ex. Singapore), and how is it draining when there's soo many outside investments in China. It's not only the rich, the middle class even the lower classes can to...........why's this article dead set as if only the wealthy can get out of the country.......there's three kinds of immagration, refugee, working class, and investors........why focus only on investor??? Immagration happens daily in our GLOBALIZED world.........dear author please look up immagration laws and regulation, this is making a soap opera out of a penny/yuan.
Indeed, it is a corrosive event, but one that is only ancillary to the reattributifve and caustic preconditions that make such an event inevitable, namely, the countries third world infrastructure.
We see in China a country that had has almost flawlessly attained its yearly economic growth goals year after year. we see a country that has taken multiple and highly investive routes in developing its globallized assets. And we see a country that, all be it very dichotimous and uneven, has managed to at least entrench its financial institutions well enough to be considered, at many levels, reliable and accountable.
And yet, ultimately, what we have not seen in the country, as is evident with the mass emmigration, is the development of a country that is 'insurable'. As with Chevez and the oil and banking industries in Venezuela, the irretrievably disproportionate exchange within the diamond industry of Africa, and, of course, with the whole of an entirley exploitive regime of Afhanistan ( the list goes on),.. China, even considering all its unquestionably upward developments, too, falls well within the sam catagory. Under the countries current proprietary laws, at any time, the government may seize land from anyone. And for that matter all assets of individuals, public or private, corporate or non, are perpetually in jeopardy.
There are no system of checks and balances as we have in our country. For all our faultering ways, and declining economic environment, here, nonetheless, it is a given that, with responsibility and caution, one can always 'insure' their investments. Small wonder that the wealthier chinese are heading our way. And objecitvely speaking what better combonation than having an investment environment that is secure give reception to those who have proven to be able to handle their finances, be they entities public or private, corporate or non, more responsibly than we have.
Moreover, distasteful for nationalistic sentiments or not, for the purposes of globalized development this does not necessarily mean the underscoring of the economic competition between our countries. Lets face it, we have already incured a huge debt to them, and there investment here will only help us in our own efforts to stablize our economy.
And for the future, this could very well turn out to be lucrative for both sides. China is facing unavoidable transparency down the road in the face of impending hyper-inflation. Already, and perhaps for the first time, the country faces the real delema, the same one we carp on about with regards to them, of having the labor markets of other countries out compete them. All the while, America will try to push for continued renovation of our own domestic output. With China's ever, though be it not yet made public and transparent, valuating currency this opens the door for America, again, to play the role of major exporter. Though that market would, for certain, be a very specialized one.
Either way, this is the direction that things are moving towards. Until suck time China develops the necessary system of checks and balances needed to ensure domestic investment and long term security, American soil will always be the more attracive place to plant ones dollars and watch them grow. And more importantly this does not mean it will have to be the undoing of either nation, rather, that we have come to a juncture where an uncertain future has very furtive possibilities, but only as seen in a global community.
Sorry about the typos of my last post. I just blundered right through that.
In fact I hate our Gov most!
We'll take your rich and your spoiled. We have many imported poor to serve them.
hA! How's it feel to be American? Hiding your income from the government. Moving abroad to a place that tickles your fancy. Getting away from those effin haters. You finally understand that culture and tradition are for lesser forms of life and we are the only true Gods that ever existed! Your all invited to ma xmas party!
We got more Mexican's that Mexico. I sure as heck don't want those rich cowards from China waggin in over here bringing their 8th rate "culture" with them.
I find it interesting that the author, Xin Haiguang, waves away China's abysmal "laws and regulations, the education system, social welfare, inheritance tax, quality of air, investing atmosphere, food safety, ability to travel, and so on" as due to its "emerging" status as a nation. No one ever called the Soviet Union an "emerging" nation. No one ever quantified Afghanistan under the Taliban as "emerging." China is one of the oldest civilizations on the planet. Its woes aren't due to it "emerging." Its brutal totalitarian regime simply sucks... that's all.
they come to vancouver ,there are areas here like richmond that are virtually all asian where a crappy house is a million dollars
Yeh, some moved into my neighborhood and started up The Bamboo Curtain Restaurant. They do all Bill Gates takeout service.
I refuse to enrich the Chinese. They are unethical, cheating people. I'm doing my part for America. I don't buy Chinese crap. You?
You own a computer. The innards were designed and assembled in China. Congratulations, and welcome to reality.
the same to any nationalities there are cheaty people and there are very kind people in every nations,so donot generalised on just Chinese and most of all DONOT BE NARROW-MINDED – now is a 21st century we friends with all international people...
Wow....stereotypical american. "I'm doing my part for America"...you mean getting brainwashed by your government into thinking China is the enemy when the enemy is actually your politicans?
I think it's horrible that western countries, including the US and European nations, have prostituted themselves for money. When despots come here, or educate their children here (Kim Jong Il's son educated in Switzerland, and on, and on..), they don't appreciate the freedom afforded them and pay it forward in their own countries. So many take their ill-gotten gains and live large and unapologetically here. (BTW: another prime example is the Russian mob overrunning the South of France.) Let's quit taking the rich, especially coming from countries where corruption is rampant. That's the only way the world will change.
yes not just the wealth but the good references before let them into the countries...we must not let Money plays the power!!!
People must know that the problem today is still unequal distribution of money to the rich and poor. not being communist or socialist, just saying that, even if you look at an office, those at the top most of the time dont do as much as the common workers do, and they justify their high salaries by saying that it is because they know more or better – not always true. how many times have you heard that a child of the owner inherits a business just because he is a child but in fact, he's not at all the brightest one to handle the position?
Unless this does not go on, there will always be a problem with money. in china, in europe, in america, where the simple stuff they get, like factory clothes and fruits, they would better off give the labor to someone else for a low salary. but now that they want more jobs for themselves, their having a hard time doing so, because they gave so many low income jobs away that if they were to get it back for a reasonable salary they have to raise prices in doing so.
Yeah they packed and scattered abroad like a pack of wolves. They will start a modest business there and would capitalized anything they could get. From tax breaks, freebies to hiring illegals and promot cheap labors. And as the business going good, they would attract and invite other foreign investors to expand or create a bigger business. They would target the masses by venturing into businesses which involves basic and common commodities. They will either make business ties or directly bribe some crooks in the government to back them up whatever they do. Then they will create a cartel together with other companies with the same nature of business to indirectly monopolize it and get rid of the competition. They would manipulate prices and make it dance in the tune of cha-cha, which is 3 steps increase and 1 step decrease that would double or tripple the price of a certain commodities in just span of one or couple of years that would give the same effect to their capital and investments. But they will only give the (other foreign) investors a handful of it and sack all the money and ship it back to China.
And also in effect, inflation rate in that particular country they're in will simultaneously rises. And if a country economy becomes unstable, probably it will resort to borrowing. Then the question is what country it would likely to borrow? I think there's no need to mention the answer. So it's like hitting two birds in one stone.
But it was just a part of a grand scheme there still some more like flooding their junks (ie. appliances, computers, gadgets, cars, fashions) and smuggled items in all markets of the worlds with predatory prices to kill it's competing businesses. They will promote cheap labor or persuade other business to export jobs to China for cheap labor. That will cause closure of some businesses and sky-rocket the unemployment and inflation rate.
And Grandest and the most effetive part of the scheme that plays a big role in the economic downturn were....banking and credit cards.
China's big and reputable banks will used their good reputations to deceive American huge investment firms.
The strategy was simple yet very effective. They were indiscriminately issuing credit cards with high credit limit to those people who neither have a substantial deposits nor the capacity to pay. They will just sold their uncollectibles I mean, receivables with a discount to huge American Financial firms. And those firms end-up losing huge amount of money from collection jobs and filling of charges against to debtors that at the very start don't have the capacity to pay.
So in the article's title saying and I quote, "China's "wealth drain": Its rich emigrate". Nope, they are not packed to leave, they are sent as economic mercenaries and they keep on sending more until China ultimately rule in the economy.
In the end China will rise while other countires will fall down the drain. And that includes but not limited to US.
You are definitely dreaming my Chinese comrade.
Keep on believing in your fairy tales. There are a lot of "if's" in your fictional scenario, most of which are far fetch. I'd have more luck winning the lottery than what you say will happen.
By the way most of the Asians that immigrate into USA are happy. And what the article says is true, we do not identify ourselves with our country of origin once we leave. I, being prime example, was born in Vietnam and immigrated here and do NOT consider Vietnam my country. There isn't a better way to prove it than to enlist in US military which I did.
I speak the same for all Asians AND immigrants. Once they get a taste of the GOOD LIFE that CHINA DOES NOT HAVE they will never ever pledge allegiance to their old country.
The bottom line, people care about THEMSELVES. If some person or some country takes better care for them they will honor that other person or country. Not this stupid idea of yours that you think they care about their 'motherland' China, which the government DO NOT care for them either.
You want proof, IF you ever have money to get out of your poor neighborhood in China and travel to Irvine, California you can come see how enriched Asians and their children live and prosper and then tell me if they have any allegiance to their former countries, especially former countries that are totalitarian (example China).
For some perhaps, to those who are "truly migrated for their own welfare. But believe me or not China has economic mercenaries that have been scattered abroad to drain and sabotage the economy of other countries.
Let me ask you one question, Did ever come across or even in your wildest dreams that how come a Superpower and Federal country like US (in which Irvine and california are part of) "who gave you a taste of good life" OWES Thrillion of Dollars from China a "totalitarian" country that has plenty of "poor neighborhood"?
It doesnt matter bill gates or garbage man,chinese or american, the god of death is counting our time (in second!). I better go to sleep now, good night!
Can it be that China is enforceing more and more regulation in protecting the mass poor and middle income people? The wealth gap is so huge together with corruption is threatening the China communist party. The leaders are forced to introduce tougher regulation fihghting corruption.
You may ask what it gotto do with wealth drain. Here the fact, most China top wealthy people accumulated their wealth for the last 30 years reform due to political linked (either their are the local authority or political family) and corruption. Only handfull are thru hardwork and spirit of entrepenuership. The tough regulation and action by Beijing are hunted them. Check those migrated to Canada, US and Australia are mostly the corrupted politician and their family.
This is not just China and most of developing and poor countries. Tones of money they looted from their country are bank-in developed world banks.
We hope your country can do something like stop providing "heaven" to this blood sucking vampires.
Its a wise move to leave China as a free run of environmental disasters by the big business is to blame for their rampant cancer rates. But don't feel sorry for those who do leave. As Chinese nationals, they still must report every quarter back to party headquarters. They must list people they met, situations they observed, and anything they learned that may help the Chinese government. Lets say they leave and get a job at an American company or even become a board member. Many times issues discussed at board meetings are highly confidential. But a Chinese citizen is sworn by law to report that information back to party headquarters. So China has the best spy network on Earth because every citizen living abroad on this planet is a spy. Every college student, government worker, millionaire, they all are spies. Take a college student studying in the USA. That student my take a subject of nuclear engineering. That student will come in contact with privileged information at some time in their studies. The student must by law, report back to party headquarters all that information gained. So lets say a Chinese student is an intern at a pharmaceutical company. They may be working on a proprietary formula for an important new drug. That student must by law report all formulas and compositions back to party headquarters. So we as as world loose so much to China and they run to the bank with it.
Are you kidding! is that not just for the curiousity that they discovered in a new country and chat about it with their colleauges? It sounds too exaggerating!!
Go China, conquer the Sodom America!
The Chinese are truely the smartest people on earth. Get rich and leave that wretched country. Brilliant.
你们一群扯淡的小子们，在这里高谈阔论，来我们China看看再说吧。
Goldmann Sachs makes the absurd claim that the GDP of China will only catch up with the GDP of the US in the year 2030!
Everybody knows that the real GDP of China is already much bigger than the GDP of the US.
For instance, the construction industry sector makes up 4% of the US GDP.
But the Chinese construction industry uses 20 times more cement than the US construction sector, employs over 80 million Chinese construction workers compared to 5 million US construction workers.
Overall, the Chinese construction sector produces 8 times more building construction than in America, therefore, the Chinese construction industry sector alone is worth 8 times 4%, or 32% of the real GDP of the US.
Another example is the health care sector which represents 17% of the GDP of the US.
Since China has 2 times more hospitals, 2 times more doctors and 2 times more health care consultations than the US, the Chinese health care sector is worth 2 times the US health care sector, or 2 times 17%, or 34% of the GDP of the US.
Therefore, just the Chinese construction sector and the Chinese health care sector alone are worth 32% + 34% equal 66% or two-thirds of the GDP of the US already.
It is obvious to everyone that the real GDP of China is already at least 2 times bigger than the GDP of the US.
see http://asians-against-racism.socialgo.com/forum/topic/47
I have been traveling to China over the last 9 years, at least 3 times a year, and yes, there are some people who are always looking at the West with admiration, and possibly playing with the idea of moving there, however there are many more people who believe that the Chinese way of living is far better than anything else we have in the West. I tend to agree with the later. Moving from a country that gives you free health, free education (up to a certain level) free benefits, growing economy and state of the art infrastructure to the West where things are falling apart is the typical "the grass is not always greener on the other side of the fence" syndrome. When moving to a new country the Chinese will be alienated in their own communities as they will not be integrated in society, and will always be looked upon as outsiders. The level of education that some Western countries adopt is far lower than China. Level of community interaction is once again way lower than is socially adopted in China. Each country has their good and bad, and I feel that the Chinese people should be proud of what they have accomplished and what they will accomplish in the future, but rather stay in your country as the West is not what you might envisage it being.
Hi, is this still a free world? They can go where they like and besides these countries only let them in if they have the money to do business so what is about this social benefits and freebies?? come one you guy also benefit from them too when they lives in US they spend, they feed the property companies very good sales targets, they pay their health insurance so there is no such things that they get anything out of the states as they work for it and follow the rules in that countries. (they come with the money donot forget) There are many foreign people in China make good fortunes too such as English Teachers, Texco from UK, Mcmondal Fast Foods, Kenturky Chickens Kitchens etc. the Chinese welcome them, so this is a free world we go to make our own happy life so long within our moral no illegal stuff ok!
However, If I am a rich Chinese I will never go to US or other countries, I think they should stay in the country to help the poors, the sicks and olds and so on
It's bad enough that we have filthy drug dealers and illegal aliens crossing our southern border, now its filthy chinese business scum bags. We need to shut our borders, specifically to keep the flthy chinese government out!
Racist
Having spent the last year and a half in Beijing I can tell you the environment is hideous. The air is not fit for humans, and the tap water will poison you. I just got back from the hospital visiting a Chinese relative who has been there for 4 days with a lung infection. Food safety is a laugh.
The part that is most bothersome is Americans have no clue how blessed they are, or how corporations are warping the political process. By pushing for less environmental controls and regulation they would put us in the exact same condition without any remorse.
Just like the wealthy fom the USA & US corporations
when morons buy from china this happens