In recent years, an increasing number of applicants from mainland China have sought to immigrate to the United States through the EB-5 Immigrant Investor Program. In 2009, the number of applicants for EB-5 investment visas nearly tripled, with many coming from Asia, particularly China.
Multiple Factors Drive the Wave of Immigration to the U.S.
In 2009, China experienced another surge in overseas investment immigration. The number of Chinese applicants for the U.S. EB-5 investment visa doubled, rising from 500 in 2008 to over 1,000. Based on current trends, it is highly likely that the number of applicants will double again in 2010.
So, what are the reasons behind this wave of immigration to the U.S.?
In fact, the original U.S. EB-5 Immigrant Investor Program was set to expire at the end of 2009, leading many applicants to submit their applications en masse at the end of the year to catch the last opportunity. Surprisingly, due to the economic downturn in the U.S., the program was successfully extended for three years at the end of 2009. On the other hand, to stimulate development in economically disadvantaged areas, the minimum investment for the EB-5 program is currently only $500,000. Exchanging $500,000 for a U.S. Green Card offers excellent value for money.
Furthermore, media reports suggest that due to the current challenging domestic investment environment and the prevalence of the "original sin theory" regarding the wealthy, many affluent individuals are choosing to immigrate in search of better investment and living environments. The free and democratic social environment of the United States meets this demand for some immigration applicants.
RMB Appreciation: A Historically Favorable Time for U.S. Immigration
According to the latest data from the China Foreign Exchange Trade System, the central parity rate of the RMB against the U.S. dollar is 6.8281. Calculated against the 8.11 exchange rate at the time of the exchange rate reform, the cumulative appreciation of the RMB since the reform has reached 15.82%.
The long-term weakness of the U.S. dollar has created a historically favorable period for U.S. immigration. At the current exchange rate, an investment of $500,000 is approximately 3.4 million RMB. When including legal fees and other costs, the total expense can be nearly 20% cheaper.
