In recent years, millionaires and billionaires under the rule of the Chinese Communist Party are increasingly immigrating overseas, choosing to vote with their feet in response to the economic management model and economic prospects of China under the CCP.
It appears that savvy investors are abandoning the CCP, as a record number of millionaires and billionaires are expected to emigrate in 2024, with an estimated 15,200 wealthy individuals choosing to move abroad. Henley & Partners, a London-based investment immigration consulting company, has been tracking this trend and noted that the expected number for this year is approximately 10% higher than the 13,800 individuals who migrated in 2023. Additionally, 500 high-net-worth individuals are expected to leave Hong Kong. Most of them are heading to democratic countries such as the United States, Canada, and Singapore. While the exact amount of wealth they will take with them is unverifiable, based on past experience, Henley & Partners estimates that each immigrant will take away wealth ranging from $30 million to $1 billion.
The reasons for these wealthy individuals choosing to emigrate vary, but most mention the uncertainty inherent in the current economic situation under the CCP, raising doubts about future investment returns. In recent years, ongoing real estate crises and turmoil have evidently been sources of this uncertainty, especially as the decline in real estate values has damaged household wealth and cast doubt on China’s overall economic growth prospects.
Some emigrants, explaining their decision to leave China, have mentioned the downgrades on China’s financial outlook by credit rating agencies Moody’s and Fitch, both headquartered in New York. Another motivation that has not been explicitly stated is the clear hostility shown by the current CCP regime towards private enterprises and individual wealth over the past few years.
For a considerable period, Singapore has been the preferred destination for wealthy emigrants of this kind. However, recently, Singapore has tightened scrutiny on wealth flowing in from China. Even individuals with nothing to hide may prefer to avoid the potential trouble and loss of personal privacy implied by seeking refuge in Singapore. As aforementioned, Canada and the United States remain popular choices for Chinese funds. The United Arab Emirates is also becoming increasingly popular, offering zero income tax, a luxurious lifestyle, and the so-called golden visas, which facilitate the easy and private flow of investment funds. Additionally, Japan is favored by wealthy emigrants due to its proximity to China, attractive lifestyle, and marketing as one of the safest countries in the world.
Of course, China is not the only country experiencing an outflow of high-net-worth individuals and families. South Korea and Taiwan have also witnessed such outward migrations. For these two countries, security, rather than economics, is the more critical concern.
For South Korea, the specter of North Korea’s aggression looms ominously. While for Taiwan, it is the belligerence of Communist China that prompts people to quickly move their lives and families away from potential danger zones. Many Taiwanese question whether the United States would be willing to defend Taiwan, which undoubtedly has a significant impact.
For international observers who have long been concerned about China-related issues, this news of the outflow of wealth from China conveys at least two messages. Firstly, it is a clear negative assessment of the economic management model of the CCP. Secondly, the departure of these vast fortunes will make the CCP’s efforts to revitalize China’s economy even more challenging, although the extent of this impact is immeasurable.