Migration of the Rich
Last year, just over 3,000 Chinese “high net worth” individuals applied for EB-5 investor visas in the U.S. In the first 6 months of this year, more than 4200 have already applied. With only 10,000 of these visas available each year, they might all be taken before the end of the year.
The EB-5 visa was created in 1990 to encourage the flow of capital into the U.S. and according to the Wall Street Journal:
Under the program, applicants and their immediate families receive permanent U.S. residency if an investment of at least $1 million in the U.S. leads to 10 full-time jobs within two years. The requirement is only $500,000 if the U.S. jobs created are in a rural or high-unemployment area.
Although China is currently the economic leader of the world, it’s economy has slowed and unemployment is on the rise. In addition, a new Communist Party President will take over at the end of the year which is causing some political uncertainty.
The young, educated rich are looking to the west for a place that (hopefully) provides a bit more political stability, cleaner air and water and a place to raise more than one child.
In the meantime, when they arrive, the wealthy new residents will be putting on the the Ritz.
Enjoy Taco – Puttin’ on the Ritz: