Nonstopdrivel
14 years ago

CHINA'S 'WEALTH DRAIN' - NEW SIGNS THAT RICH CHINESE ARE SET ON EMIGRATING
 

According to a recent study, Chinaʼs richest dream of one thing: packing up and heading for other countries, especially the West. This Chinese “investment emigration” is in full swing, and can have corrosive economic and social consequences.

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In Beijing, people moving in different directions -- the rich increasingly, abroad.(sherrattsam)

By Xin Haiguang 经济观察报 / Worldcrunch

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.

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.

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 the International 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.

All rights reserved ©Worldcrunch - in partnership with eeo.com.cn
June 10th, 2011 - 16:06


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Zero2Cool (1h) : Woo-hoo
TheKanataThrilla (2h) : NFL Network is broadcasting the game tonight, but not in Canada. Not sure why as no local television is showing the game.
beast (22h) : But the Return from IR designations had to be applied by the 53 man cutdown.
beast (22h) : It's a new rule, so it's not clear, but my understanding was that they could be IR'd at any time
Mucky Tundra (8-Aug) : *had to be IRed at 53
Mucky Tundra (8-Aug) : beast, I thought the designate return from IR players had to be IR at cutdowns to 53, not before
beast (8-Aug) : It's a brand new rule, either last season or this season, prior, all pre-season IRs were done for the season
beast (8-Aug) : But the Packers would have to use one for their return from IR spots on him, when they cut down to 53.
beast (8-Aug) : I think the NFL recently changed the IR rules, so maybe the season might not be over for OL Glover.
Zero2Cool (8-Aug) : Packers star Howton, first NFLPA prez, dies at 95 😔
dfosterf (8-Aug) : Apparently it is too complicated for several to follow your simple instructions, but I digress
dfosterf (8-Aug) : Zero- Did you see what I posted about Voice of Reason and his wife? She posted over at fleaflicker that they are both "In"
Zero2Cool (7-Aug) : Well, not crazy, it makes sense. Crazy I didn't notice/find it earlier
Zero2Cool (7-Aug) : it's crazy how one stored procedure to get data bogged everything down for speed here
dfosterf (7-Aug) : to herd cats or goldfish without a bowl. They reminded me of the annual assembly of our fantasy league
dfosterf (7-Aug) : out on a field trip, outfitting them with little yellow smocks. Most of the little folk were well behaved, but several were like trying
dfosterf (7-Aug) : Yesterday my wife and I spent the afternoon on the waterfront here in Alexandria, Va. A daycare company took about 15 three/four year olds
wpr (7-Aug) : seems faster. yay
dfosterf (7-Aug) : Wife of reason posted on the in/out thread on fleaflicker that both she and vor are in
Zero2Cool (7-Aug) : This page was generated in 0.135 seconds.
Mucky Tundra (7-Aug) : Tbh, I can never tell the difference in speed unless it's completely shitting the bed
Zero2Cool (7-Aug) : Sure does feel like site is more snappy
Zero2Cool (6-Aug) : I thought that was the Lions OL
Mucky Tundra (6-Aug) : Travis Glover placed on IR; seasons over for him
Zero2Cool (6-Aug) : found bad sql in database, maybe site faster now?
dfosterf (5-Aug) : I'm going to call that a good move.
Zero2Cool (4-Aug) : Packers sign CB Corey Ballentine
Zero2Cool (4-Aug) : I'm not sure how to kill the draft order just yet so it's not so confusing.
Mucky Tundra (4-Aug) : *to be able
Mucky Tundra (4-Aug) : and because it's not a dynasty league (which makes a lot more sense to be ability to trade picks)
Mucky Tundra (4-Aug) : Oh I know; I was just exploring and it blew my mind that you could trade picks because of the whole reordering thing
Mucky Tundra (4-Aug) : Zero, I think I preferred my offer: your 1st for my 15th rounder
Zero2Cool (4-Aug) : Keep in mind, we do a draft reorder once all members locked in
Zero2Cool (4-Aug) : You can have my 12th Rd for your 2nd round
Mucky Tundra (4-Aug) : Hey i didn't know we could trade picks in fantasy
Mucky Tundra (3-Aug) : Update: Rock has tried a cheese curd, promises it's not his last
Zero2Cool (3-Aug) : watch it!! lol
Mucky Tundra (3-Aug) : you're right, we never did leave, the site just went down :P
Mucky Tundra (3-Aug) : Rock claims to have never eaten a cheese curd
Zero2Cool (3-Aug) : We did not leave.
Mucky Tundra (3-Aug) : Family Night! WE ARE SO BACK!
Mucky Tundra (2-Aug) : To this day, I'm still miffed about his 4 TD game against Dallas on Thanksgiving going to waste
Martha Careful (2-Aug) : Congratulations Sterling Sharpe. He was terrific and I loved watching him play.
beast (2-Aug) : I believe it's technically against the CBA rules, but Jerry just calls it a simple unofficial chat... and somehow gets away with it.
beast (2-Aug) : Jerry Jones is infamous for ̶n̶e̶g̶o̶t̶i̶a̶t̶i̶n̶g̶ chatting with players one on one... and going around the agent.
Mucky Tundra (1-Aug) : Oo just saw a blurb saying that Dallas negotiated directly with Parsons and not through his agent
Mucky Tundra (1-Aug) : I assumed that both guys will get paid, just a matter of when or how we get there
Zero2Cool (1-Aug) : McLaurin nor Micah going anywhere. They will get money
Mucky Tundra (1-Aug) : the Synder years or do they take care of one of their own?
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