Wealthy Chinese Fleeing The Country in Record Numbers

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Around the world, people complain about their governments and the debts they rack up in the name of the citizens. Most of the time, the people know they can’t do anything about it.

The first stage of complaining is grumbling, followed by gnashing of teeth and yelling. In stage two, you can hear advice to buy gold, silver and diamonds, followed by subscriptions to survivalist and self-sufficiency magazines. Stage three includes moving assets to another country.

In stage four, people are so worried that those with the means to do so, actually move their assets and themselves to another country.

When you start seeing people engaging in stage four, you know things are getting bad.

These days, America and China seem to be bound together at the wrist, and it isn’t just because of the U.S. debt, most of which is owed to China. Certainly, Americans are not happy with the government about the unbelieveable debt being created, as taxpayer money pours into a seemingly bottomless pit. In a surprising and dramatic turnaround, we now see wealthy Chinese sending hundreds of billions of dollars out of China, to overseas destinations.

Moving money is the first part of stage four, and that would be bad enough, but now many wealthy Chinese are following behind their money and they and their families are turning up in other countries in increasing numbers.

Today, China has 157 billionaires, more than a million millionaires and more than 135 million Chinese are considered middle class. The current estimate of Chinese personal wealth and assets held outside of China is about $658 billion, according to the Wealth Intelligence Center. They say Chinese worth more than $16 million have substantial overseas investments.

The average age of the billionaires is 53, nine years less than the global average.

In the year ending March, 2013, wealthy Chinese had bought up more than $8 billion, just in US residential real estate. In Australia, that figure was around $4 billion, plus an additional $12 billion in other assets.

A Bank of China and Hurun study showed that of China’s wealthy, more than half are making steps to leave the country or already have done so.

Why is this happening?

The simple answer is the triple of family, health and wealth.

“Many experts say the wealthy are moving to protect their wealth, their health, and their families. With China increasingly cracking down on ill-gotten gains and corruption, many of the politically connected wealthy are looking for safer havens abroad. They are also looking for better environments for their children, with better schools and cleaner air.” – CNBC

As it is all over the world, the rich keep getting richer in China, but more money is of no use to you if it is taken away. According to NPR, many wealthy Chinese are now getting worried about their situation, because “income inequality is staggering, corruption systemic, and public protests a daily occurrence.”

Possibly the most important reason for these people to leave China is that 17 percent of the billionaires on the Hurun Rich List ended up in protracted court situations or in prison. That possibility must focus their mind on your personal safety.

Dwight L. Schwab Jr. is a moderate conservative who looks at all sides of a story, then speaks his mind. His BS in journalism from University of Oregon, with minors in political science and American history stands him in good stead for his writing.

Dwight has 30 years in the publishing industry, including ABC/Cap Cities and International Thomson. A native of Portland, Oregon, and now a resident of the San Francisco Bay Area.

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