On the cover of The Economist, a giant panda symbolizing China is seen climbing to the top of the Empire State Building. In the latest report on immigrant entrepreneurship in the United States released by the Ewing Marion Kauffman Foundation, China is the second-largest source country, and the majority of U.S. investment immigration visas issued annually are granted to Chinese nationals.
In recent years, the U.S. EB-5 investment immigration program has become the fastest, most convenient, and most popular way for investors and their families to obtain U.S. Green Cards. Experts at Worldway Immigration state that U.S. Regional Centers are becoming increasingly mature and are better understood and recognized by domestic investors. As more Chinese families meet the immigration requirements, and given the persistent demand for high-end international education for their children, combined with the tightening of immigration policies in Canada, Singapore, and Australia, many domestic investors are prioritizing U.S. immigration, leading to a steady increase in application numbers.
Slow Processing in the First Half of 2012
Information from U.S. Citizenship and Immigration Services (USCIS) indicates that no investment immigration applications were approved in the last six months. As a leading institution in U.S. investment immigration, Worldway Immigration experts believe this is due to two reasons: first, the EB-5 program was set to expire on September 30, causing investors to rush their applications out of fear of policy changes, which led to a backlog and slow processing; second, as the U.S. presidential election approached, it was a highly sensitive period. Any hasty approval of I-526 applications for EB-5 projects by USCIS could have become a target for the Republican Party to attack the Democratic Party, thus causing delays in USCIS processing during this time.
Now that the U.S. presidential election has concluded and Barack Obama has been successfully re-elected, it remains uncertain whether the current USCIS Director, Alejandro N. Mayorkas, will continue in his position. However, based on the strong support for the development of the EB-5 program from both the Democratic and Republican parties, the implementation and continuity of U.S. investment immigration policies should remain unaffected.
Increasing Uncertainties for 2013 Investment Immigration
There are reports that U.S. Department of State visa officials have suggested that, given the large number of U.S. EB-5 investment visas taken by Chinese investors, USCIS will consider placing planned restrictions on issuing visas to Chinese investors in 2013. This is not discriminatory treatment against Chinese investors; for immigration-based visas, the U.S. Department of State requires restrictive measures when too many visas are issued to a single country or when the proportion relative to other countries is deemed inappropriate.
Worldway Immigration experts point out that Chinese investors account for the vast majority of current U.S. EB-5 investment immigration applicants. For example, in the 2012 fiscal year, the total number of immigrant visas approved for Chinese EB-5 applicants was 6,124, accounting for 80% of the 7,641 total investment immigration visas issued globally that year. Therefore, this adjustment proposal was made in consideration of the needs of applicants from other countries. Furthermore, the U.S. Department of State anticipates that a visa backlog and waiting period for Chinese investment immigration applicants may emerge in the second half of 2013.
Additionally, regarding Targeted Employment Areas (TEA), USCIS intends to further challenge the TEAs designated by state governments and may implement stricter criteria for TEA certification. Of course, whether USCIS will implement and execute these adjustment plans in 2013 remains to be seen.
As time passes, uncertainties are bound to increase, and the probability of being affected by various combined factors will be higher. If the U.S. implements quota control measures for applicants from mainland China, it will severely impact application speeds, potentially trapping clients in long waiting periods, and various strict measures may also cause some applicants to lose their eligibility.
Apply Sooner Rather Than Later
Faced with the current surge in application numbers, if USCIS continues to maintain its existing processing capacity, the trend of "slower processing speeds and stricter selection" will continue. A surge in the number of applicants will inevitably lead to the tightening of immigration policies and higher thresholds; this is a common pattern in the immigration industry.
In this regard, Worldway Immigration experts believe that as the EB-5 visa quota becomes increasingly tight, later applicants are more likely to face waiting periods at USCIS. Investors who meet the requirements should start their U.S. EB-5 investment immigration applications as soon as possible to avoid being affected by policy adjustments. U.S. investment immigration focuses on project selection, including the selection of the various teams operating behind the project. Faced with the ever-increasing number of U.S. Regional Centers and complex projects, investors must analyze and compare carefully, and try to choose a formal, legitimate immigration company with extensive experience in handling U.S. immigration and a high number of successful cases to improve the success rate of their U.S. investment immigration.
