2010 will be known as the “Year of America” for Chinese investment immigrants. What has caused this wave of immigration to arise, and where will it lead?
The vigorous economic development of certain countries and regions in Asia has inevitably resulted in waves of investment immigration, with wealthy individuals from mainland China now taking the lead.
Since the United States enacted regulations for investment immigration in 1990, the majority of clients were initially from South Korea and Japan, followed later by many clients from Taiwan and Hong Kong. In recent years, investment immigrants from mainland China, especially from coastal areas, have been particularly enthusiastic.
In this new wave of investment immigration, U.S. immigration agencies are focusing on the growing number of wealthy individuals in China, attempting to attract their funds to the United States.
Data released by the U.S. Department of State indicates that the total number of EB-5 visa approvals in the 2009 fiscal year surged from 1,443 in the previous fiscal year to 4,218, with 1,979 applicants from China, far exceeding the 903 from South Korea, which ranked second. In the 2007 fiscal year, out of 1,099 investment immigration green cards issued, only 293 were granted to Chinese applicants, while South Korean applicants secured over 500 green cards. The total number of EB-5 visa approvals in the 2010 fiscal year is also expected to rise significantly, with Chinese applicants potentially accounting for about 70% of the total.
The global financial crisis has contributed to the formation of this investment wave from wealthy Chinese individuals to the U.S. in two ways: first, U.S. companies are generally facing a shortage of funds, and the government hopes to attract more foreign capital to stimulate economic development and help alleviate high unemployment rates; second, export-oriented enterprises in mainland China are continuing to break through market bottlenecks, and abundant private capital is in need of more investment targets. Therefore, there is strong demand for acquiring and investing in various high-quality and affordable assets in the United States. Furthermore, the appreciation of the Renminbi has brought about a stronger wealth effect for the wealthy class in China, stimulating continued growth in private overseas investment.
As for the risks associated with U.S. investment immigration, it is essential to follow general principles of investment, much like stock investors on Wall Street, who must research the market and understand the fundamentals of the stocks they intend to purchase. Each investor should have a clear understanding of the recommended investment projects; if they do not belong to a familiar industry or investment category, it is advisable to rely on third-party professional institutions to help evaluate the feasibility of the investment. If one has higher return expectations, they must be mentally prepared to bear greater risks.
Given that U.S. investment immigration carries certain risks, it is more suitable for applicants who possess strategic investment vision and an awareness of the risks associated with the investment projects themselves.
Regarding the issue of whether investment immigration can transfer assets through illegal means, U.S. immigration law imposes strict regulations on the source of funds. The funds for investment immigration must be obtained through legal channels and deposited into designated accounts in the United States. Legal sources of funds include business income, proceeds from real estate sales, stock investment profits, and inheritances or gifts. If one cannot prove the legal source of the investment funds, they will have difficulties passing the scrutiny of immigration lawyers and accountants, and typically will not enter the formal application process.
