Recent international media reports have been buzzing about the trend of wealthy elite Chinese citizens becoming dissatisfied with the Chinese Communist Party (CCP) due to the economic downturn in China and flocking to Japan in large numbers to purchase luxury homes, drawing attention from Japanese society and the international community. Experts suggest that against the backdrop of turmoil and instability in China, these Chinese tycoons are choosing to immigrate to Japan in search of a better living environment to protect their private assets and escape potential disasters.
According to a report released last June by Henley & Partners, a consultancy firm that tracks global immigration trends, an estimated 13,500 high net worth individuals from China emigrated overseas in 2023, making China the country with the most severe outflow of high net worth individuals in the world. The firm defines high net worth individuals as wealthy individuals with assets of over $1 million available for investment.
In addition to traditional immigration countries like Europe and the United States, Japan has emerged as a new favorite for this wave of Chinese wealthy immigrants. The number of Chinese residents in Japan reached a staggering 820,000 last year, an increase of 60,000 from the previous year and the largest growth in recent years.
In recent years, due to the continued depreciation of the Japanese yen, real estate prices in Japan have become relatively affordable for Chinese individuals. This has prompted many Chinese tycoons to purchase properties in Japan. According to a report by The Wall Street Journal on May 2, last year, the owner of a metal trading company spent around $650,000 on a luxury home in Tokyo where he and his family now reside.
Like many Chinese buyers, this company owner avoids discussing domestic politics and instead focuses on the challenges of relocating to Tokyo with his family. They express their fondness for Japan, including its cuisine, culture, education, and safe environment.
The settling of Chinese tycoons in Tokyo has triggered a new wave of high-end real estate demand in the city. At the same time, the influx of a large number of Chinese individuals, especially wealthy ones, settling in Japan, is believed to potentially impact Japanese society in various ways.
According to a real estate broker in Tokyo, his income has doubled or tripled mainly due to Chinese buyers. Many Chinese individuals are not only buying properties in major cities but also showing interest in purchasing vacation homes in places like Hokkaido. As a result, residential land prices in areas near ski resorts in Furano City, Hokkaido, have risen by 28%, the highest increase in Japan.
In May 2022, Wang Qing, the owner of a Chinese welfare planning company in Japan, shared the stories of two friends in an article published in the Japanese financial magazine, DIAMOND.
He recounted that the trend of immigration to Japan started in the mid-to-late stages of the pandemic. At that time, most immigrants leaving China faced various risks. One of them was a Mr. Zhang, who was in his early fifties.
In May 2022, after enduring a series of challenges, he finally “escaped” to Japan from Shanghai by plane. “The moment I arrived at Narita International Airport, I felt like I was back in the human world!” Zhang said.
According to Zhang, due to the lockdown during the pandemic, the vast city of Shanghai was deserted; the bustling streets were eerily quiet. All shops at Pudong Airport were closed, hardly any people were around, creating an almost ghostly atmosphere. Airport staff were all wearing protective suits, even the flight attendants…
However, upon arriving at Narita Airport, he noticed that there were no staff in white coats, everything was normal, except that people were just wearing masks. Seeing this long-lost “everyday life” in front of him, he immediately felt at ease, as if he had “returned from hell to earth.”
Similarly, Mr. Li, who also immigrated from Shanghai to Japan amid strict pandemic measures, stated that the main reason for their immigration to Japan was for their children’s education and to avoid being brainwashed by the CCP’s political propaganda.
The couple had two children. Li operated a trading company, and his wife was a producer at a state television station. Despite their decent social status and financial stability, the increasingly stringent controls, deteriorating social and political environment, and concerns about their children’s future led them to make the decision to leave China.
“Recently, seeing the education and textbooks in schools for our children, we felt that the patriotic education was too extreme; the weight of political propaganda was increasing year by year. I worry that our children might be brainwashed, and there’s a sense of urgency to take action. So, we decided…” Li explained.
Sum Yifan, a Chinese social issues expert living in Japan, expressed to a media outlet that the primary reason Chinese wealthy individuals are leaving China is the fear of their assets being “redistributed.”
He stated, “You are wealthy now, but will your descendants be? In other words, the wealth you have in China may not necessarily belong to you. The most typical feature of the CCP’s political economy is that private property is not protected and can be ‘communized’ at any time. In addition, property rights in China are for 70 years; after that, theoretically, they can be reset, no longer yours. Whereas properties purchased in countries like Japan are always private property.”
“With China in such chaos now, the possibility of internal conflicts or wars occurring in the future is real. So, these wealthy individuals want to escape in advance. Japan is close to China, shares cultural similarities, has a more developed economy, healthier political system, and a safer society. Coupled with relatively lenient immigration conditions, some Chinese wealthy individuals choose to immigrate to Japan,” he added.
Before the pandemic, Chinese individuals were “buying up” Japanese goods in Japan; post-pandemic, Chinese affluent individuals are “buying up” real estate in Japan.
A Chinese resident in Japan, Zhao, who manages real estate and business in Japan, mentioned that since the mainland’s pandemic restrictions eased, there has been a notable increase in Chinese buyers of Japanese properties. Super-rich individuals prefer high-rise apartments in Tokyo’s harbor area, with each property starting at a minimum of 300 million Japanese yen (approximately $1.96 million). Most affluent individuals favor coastal areas like the Koutou and Chuo districts, with transaction prices ranging from 100 million to 500 million yen (from $650,000 to $3.27 million) per property.
Zhao explained that Chinese wealthy individuals purchase a variety of properties, from individual units to entire buildings; some prefer high-rise apartments, while others like single-family homes with yards. Some purchase properties online, while others make the decision after viewing them in person. Moreover, post-pandemic, there has been a significant increase in buyers purchasing properties for their own residential use.
Mr. Yang, a Chinese national serving as a CEO in a Japanese company, stated that many of the Chinese individuals choosing to settle in Japan are those who have a good understanding of and affinity for Japan. They appreciate the diverse international cuisines available, the cost-effectiveness, and the convenience of doing business and visiting family due to Japan’s proximity to China.
The exact number of Chinese tycoons who have purchased real estate in the Tokyo area remains confidential according to a staff member at a large Japanese real estate company, as it involves commercial secrets and individual privacy rights that companies do not disclose publicly.
The significant number of Chinese residents in Japan, particularly concentrated in major metropolitan areas like Tokyo, has raised concerns in Japanese society. With the growing presence of Chinese individuals, there is bound to be a cultural impact on Japan, gradually giving rise to a unique environment that may influence Japanese society.
Sum Yifan expressed concerns to a media outlet that due to the influence of the CCP’s political culture, the mindset of many Chinese individuals is “poisoned.” He fears that this poison could gradually infect Japanese society and culture. He cited overseas Chinatowns often having a poor reputation due to a lack of self-purification. He hopes that the Japanese government will implement educational programs on values and other aspects for immigrants.
According to the latest data released by the Japanese Immigration Bureau of the Ministry of Foreign Affairs on March 22, 2024, the total number of foreign residents in Japan at the end of 2023 was 3,410,992, a 10.9% increase from 2022. Among them, China has the largest number at 821,838, an increase of 60,275 from 2022, followed by Vietnam with 565,026 and South Korea with 410,156, while Taiwan ranks ninth.
Chinese residents accounted for 24.1% of the total foreign population in Japan, marking a 7.9% increase from 2022.
Over the past two years, the number of Chinese residents living in Japan has been steadily rising. In 2021, the total number of Chinese residents in Japan was 716,606, which grew to 761,563 in 2022, and surged to 821,838 in 2023 after the CCP’s “zero-clearance” policy was lifted.
Looking at the growth rate of the Chinese population in Japan over the past decade, the recent surge in the last two years stands out as a leap in growth compared to the relatively steady increase before. Furthermore, Tokyo has the highest number of foreign residents in Japan, with 663,362 individuals, representing close to 20% of the total foreign population.
Official statistics from Tokyo in early 2024 revealed that the total number of foreign residents was 647,416 (a slight discrepancy from the data released by the Ministry of Foreign Affairs Immigration Bureau, possibly due to differences in timing of data collection, among other factors). Among them, there were 257,198 Chinese residents, an increase of 26,904 from the previous year, accounting for nearly 32% of the total Chinese population in Japan. This means that one out of three Chinese individuals resides in Tokyo.
Both the total number and growth rate of Chinese residents in Tokyo significantly exceed those of other nationalities. For instance, the second-highest nationality, South Korea, has just over 80,000 residents, with a minor increase from the previous year.
From a statistical perspective, the abnormality of the number and growth rate of Chinese residents in Japan, particularly concentrated in Tokyo, indicates a correlation with China’s economic decline, authorities continuously “clipping investors,” and an increase in various social unfavorable factors. There will likely be an increasing number of individuals with resources and capabilities choosing to leave China.