Facing the booming trend of the U.S. EB-5 investment immigration program in China, the 2010 "Global Politics and Security" report released by the Chinese Academy of Social Sciences pointed out that China is becoming one of the world's largest sources of immigrants, with the "third wave of immigration" intensifying during the first decade of this century. Unlike the arduous paths taken by previous generations of immigrants, this new wave is primarily composed of China's new wealthy class and intellectual elites, and their preferred destination is the United States.
The "Year of the United States" for Chinese Investment Immigration
According to data released by the U.S. Department of State, in the 2009 fiscal year, the number of EB-5 investment immigration visas—which grant U.S. permanent residency (the "Green Card") through an investment of at least $500,000 (approximately 3.4 million RMB)—increased by three times compared to the previous year, surging from 1,443 in the previous fiscal year to 4,218. Among these, the number of investment immigrants from China grew the most rapidly, reaching 1,979, far exceeding South Korea, which ranked second with 903.
A spokesperson for the U.S. Citizenship and Immigration Services stated that in recent years, the number of applications and approvals for EB-5 visas has been continuously increasing, with about 70% of such visas approved in fiscal year 2009 coming from Asian countries and regions such as China and South Korea.
Currently, China has become the largest source country for investment immigrants to the U.S. In fiscal year 2007, the U.S. issued a total of 1,099 investment immigration green cards, of which only 293 were issued to Chinese applicants, while South Korean applicants received over 500. In the past, it would take several months to find buyers for an EB-5 investment project in China; now, the more than 200 spots for a single project are snapped up in two to three months. Immigration experts predict that the total number of EB-5 immigration visas approved by the U.S. in fiscal year 2010 will continue to grow significantly, and the proportion of Chinese applicants may rise to around 70%. It is no wonder that immigration experts predict 2010 to be the "Year of the United States" for Chinese investment immigration.
Reviewing the history of mainland Chinese immigrating to the U.S., from 1980 to 1989, the number of mainland immigrants who obtained U.S. green cards was over 170,000, about 10 times that of the previous decade. From 1990 to 1999, this figure doubled. The "2008 Yearbook of Immigration Statistics" released by the U.S. showed that the number of mainland Chinese immigrants who became U.S. citizens and obtained green cards that year both hit record highs, with 40,000 people naturalized alone. In the last two years, the pace of Chinese immigration to the U.S. has further accelerated.
Uncle Sam Favors Chinese Wealthy
Starting from the early 1990s, to cope with competition in the immigration field from countries like Canada and Australia, the U.S. formulated a more flexible investment immigration policy. In 1990, the U.S. Congress passed the "Immigration Act of 1990," stipulating that foreigners have the right to obtain permanent residency by investing in the United States. This type of visa has a quota of 10,000 per year, with 3,000 spots reserved for "Regional Centers," which are low-employment areas designated by the U.S. government. According to this act, foreign immigration applicants who invest $1 million to create a commercial enterprise beneficial to the U.S. economy, or invest $500,000 in specific areas and create 10 full-time jobs for U.S. workers, can be issued a two-year "conditional" immigration visa. 90 days before the two-year period expires, they can apply to become permanent residents.
To attract investment immigrants, the U.S. immigration authorities have relaxed many conditions since 1996, such as investment methods and the calculation of hired workers. Investors do not need to operate the enterprise themselves; the U.S. has "Regional Centers" that can conduct unified investments. As long as the jobs are indirectly created by the "Regional Center," it can be considered that the investor has fulfilled the quota of creating 10 jobs. Investors can also invest through existing U.S. investment funds. Recently, the U.S. immigration authorities also agreed that investors can purchase insurance from third-party insurance institutions for their $500,000 investment. Taking the U.S. Idaho EB-5 project as an example, this project not only received strong support from the Idaho state government but also obtained a commitment from a U.S. insurance company to guarantee the safety of the investment funds. This is unique among U.S. EB-5 projects, and currently, only this project has obtained such a commitment from an insurance company; therefore, this project can be said to be a zero-risk project.
The U.S. EB-5 investment immigration act was originally scheduled to expire on September 30, 2009. The Obama administration subsequently announced a 3-year extension of the EB-5 Regional Center program, allowing the U.S. to maintain its advantage in attracting investment immigrants. After the financial crisis, U.S. bank credit tightened, causing many commercial development projects to stall due to a lack of loans, making overseas investment the best alternative source of funding. According to statistics from the Association to Invest In the USA (IIUSA), the number of recognized "Regional Centers" across the U.S. has increased from over 20 in 2006 to over 100 today.
Foreign investment immigration is very popular in many parts of the United States. Analysts point out that while the U.S. welcomes Chinese investment immigrants, what China loses is not only wealth but also valuable human resources, the value of which is difficult to quantify. It is reported that in this new wave of immigration, most immigrants are the backbone of society aged 30 to 40. Many of them possess skilled professional expertise and have accumulated relatively substantial capital, and they take these "resources" abroad when they immigrate.
Multiple Factors Drive the U.S. Immigration Wave
In recent years, the U.S. has become the preferred destination for Chinese investment immigrants due to its lower investment costs, high success rate, and faster approval process. In terms of application thresholds, countries with high success rates for investment immigration mainly include the U.S., Canada, Australia, and Singapore, with stipulated investment thresholds of $500,000 (3.4 million RMB), 800,000 CAD (approx. 5.3 million RMB), 800,000 AUD (approx. 4.9 million RMB), and 1.5 million SGD (approx. 7.5 million RMB), respectively. In terms of investment amount alone, the U.S. is the lowest.
In terms of the difficulty of application, U.S. investment immigration only requires that the source of personal assets be "legally obtained" and does not strictly require that the assets must be derived from business operations. In contrast, Canada requires investment immigration applicants to have "successfully operated or managed a business" and possess a certain level of management experience.
In terms of the approval speed for investment immigration applications, it takes an average of about 6-12 months for U.S. immigration applicants from filing to obtaining an immigration visa, which is much faster than similar immigration procedures in countries like Canada. However, for investment immigration to countries like Canada and Australia, there is basically no risk to the investment, and the relevant departments will return the principal after 5 years. As applicants for U.S. investment immigration, one must bear greater investment risks, which requires investors to have a "discerning eye" and choose investment projects with strong guarantees.
Compared with other immigration channels, U.S. investment immigration is relatively a shortcut. The various factors mentioned above have caused the new wealthy and elite Chinese who intend to immigrate to set their sights on the United States. Of course, there is another core reason for the rise of this wave of immigration in China: China's economy is leading the global recovery, increasing the wealth in the hands of Chinese people; and the rise in the RMB exchange rate has led to a decrease in the cost of investment immigration to the U.S.
Most People Immigrate for Their Children
According to U.S. immigration law, once a "conditional" permanent resident status is obtained, the investor's spouse and unmarried children under 21 can enjoy the same benefits as formal permanent residents, including the freedom to live and work anywhere in the U.S.; the right to apply for green cards for other relatives; and the enjoyment of benefits for permanent residents during schooling. Immigrant children can attend U.S. public primary and secondary schools for free, and when choosing universities, it is easier for them to get into prestigious U.S. universities than foreign students, and tuition fees are also charged according to resident standards.
Chinese people have always valued education, and the comprehensive education level of the United States leads the world; about 50 of the world's 100 prestigious schools are from the United States. According to statistics from immigration agencies, what immigrants are seeking is high-quality education, high welfare, low tax points, a healthy environment, sound laws, safe food, and the convenience of visa-free travel to many countries, among which 60% of applicants prioritize their children's education.
In addition, some Chinese-American immigration lawyers have stated that China's high housing prices have also created conditions for investment immigration, and some have even put forward the saying that "Beijingers living within the Second Ring Road have the net worth to invest in U.S. immigration"; there are also some investment immigrants who hope to find an outlet for their funds. Regardless of the considerations, immigrating to the U.S. and holding a "Green Card" of the United States of America has become a popular choice for the wealthy in China today.
